Multiple choice

Which of the following are liabilities?

  1. Payables and Receivables

  2. Prepaid and Accrued

  3. Withdrawals and Expenses

  4. Unearned and Payables

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Liabilities are obligations to pay. Unearned revenue is a liability because the business owes a service or product, and payables are debts owed to creditors.