What is the primary purpose of a liability account? A) To track income B) To track expenses C) To track obligations D) To track assets

Which of the following is NOT a liability? A) Notes Payable B) Unearned Revenue C) Cash D) Accrued Liabilities

What type of account is 'Long-term Debt'? A) Asset B) Liability C) Equity D) Revenue

Which of the following accounts would increase with a credit? A) Accounts Receivable B) Accounts Payable C) Cash D) Inventory

What is the normal balance of a liability account? A) Debit B) Credit C) Zero D) Depends on the account

Which of the following is an example of a current liability? A) Bonds Payable B) Accounts Payable C) Equipment D) Land

What does 'Accounts Payable' represent? A) Money owed to suppliers B) Money owed by customers C) Cash on hand D) Investments

Which financial statement would you find liabilities listed? A) Income Statement B) Cash Flow Statement C) Balance Sheet D) Statement of Retained Earnings

What is the effect of paying off a liability on the accounting equation? A) Assets increase B) Liabilities decrease C) Equity increases D) No effect on the equation