Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account.An account title may be used more than once or not at all.
-Corporate income taxes owed to the state government
A)Cash
B)Prepaid Asset
C)Investments
D)Taxes Payable
E)Preferred Stock
F)Accounts Receivable
G)Land
H)Accounts Payable
I)Retained Earnings
J)Notes Receivable
K)Buildings
L)Notes Payable
M)Common Stock

Question

Quizplus · Accepted Answer

The account title that most accurately fits the description of "Corporate income taxes owed to the state government" is Taxes Payable, as this account represents the amount of taxes that the company owes to the government.

Note: Cash, Prepaid Asset, Investments, and Accounts Receivable are all asset accounts, while Preferred Stock, Common Stock, and Retained Earnings are equity accounts. Land, Buildings, Notes Payable, and Notes Receivable are all balance sheet accounts, but they do not accurately describe the liability of corporate income taxes owed to the state government. Accounts Payable is a liability account, but it typically represents amounts owed to creditors rather than to the government for taxes.

Choose from the Following List of Account Titles the One