Which of the following is an example of a liability that might be owed by a discount shoe store?
A) promotional signs
B) money owed to shoe distributors
C) money in the cash register
D) the reduced prices paid by customers

Question

Quizplus · Accepted Answer

Liabilities are obligations that a company owes to others, and one common liability for a shoe store would be money owed to shoe distributors for purchasing inventory. Promotional signs would be considered an expense, not a liability. Money in the cash register would be considered an asset, not a liability. The reduced prices paid by customers would also be considered an expense, not a liability.

Which of the Following Is an Example of a Liability