Accounts Executive Question:

Explain liability account?

Tweet Share WhatsApp

Answer:

A liability account is a general ledger account in which a company records its debt, obligations, customer deposits and customer prepayments, certain deferred income taxes, etc. that are the result of a past transaction. Common liability accounts under the accrual method of accounting include Accounts Payable, Accrued Liabilities (amounts owed but not yet recorded in Accounts Payable), Notes Payable, Unearned Revenues, Deferred Income Taxes (certain temporary timing differences), etc.

Download Accounts Executive PDF Read All 51 Accounts Executive Questions
Previous QuestionNext Question
What are your tactics, techniques, and the sales methods to increase revenues?Explain balance sheet accounts?