An example of a liability would be:Group of answer choicesWages payableInventoryCapitalAccounts receivable
Question
An example of a liability would be:Group of answer choicesWages payableInventoryCapitalAccounts receivable
Solution
An example of a liability would be: Wages payable.
Here's why:
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Liabilities are what a company owes. These are obligations or debts that the company needs to pay.
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Wages payable falls under this category because it is an amount that the company owes to its employees for their work but has not paid yet.
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On the other hand, Inventory and Capital are considered assets, not liabilities. Assets are resources owned by a company which can be used to produce value.
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Accounts receivable is also an asset. It represents the money owed to a company by its customers for goods or services provided.
So, out of the given options, Wages payable is the correct example of a liability.
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