Which of the following liability accounts is likely to be satisfied without a future cash payment?
A)Wages payable.
B)Unearned subscriptions revenue.
C)Accounts payable.
D)Taxes payable.

Question

Quizplus · Accepted Answer

Unearned subscriptions revenue is a liability account that represents cash received in advance for goods or services that have not yet been delivered or performed. Therefore, it can be satisfied by delivering the goods or performing the services, rather than making a future cash payment. The other options (wages payable, accounts payable, taxes payable) would require future cash payments to satisfy the liabilities.

Which of the Following Liability Accounts Is Likely to Be