Which of the following is an example of a liability account?
A) Payroll Taxes Expense
B) FUTA Payable
C) Salaries and Wages Expense
D) Cash

Question

Quizplus · Accepted Answer

Liability accounts represent amounts owed to creditors or other parties. FUTA Payable represents unemployment taxes owed to the government but not yet paid, making it a liability account. Payroll Taxes Expense and Salaries and Wages Expense are both expense accounts, which represent costs incurred in running a business. Cash is an asset account, representing money the business has on hand or in the bank.

Which of the Following Is an Example of a Liability