Multiple Choice
Which of the following is NOT true about liabilities?
A) Liabilities are amounts owed by a business.
B) Liability accounts have a normal credit balance.
C) Financing activities will affect the amount of liabilities.
D) Examples of liabilities include notes payable, contributed capital and income tax payable. Contributed capital is part of stockholders' equity and is not a liability.
Correct Answer:
Verified
Correct Answer:
Verified
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