5 Questions
Which type of liability is supported by oral or informal promises to pay by the debtor?
Accounts payable
Which type of liability is supported by written or formal promises to pay by the debtor in the form of promissory notes?
Notes payable
Which type of liability arises from interest-bearing liabilities and represents interest incurred but not yet paid?
Interest payable
Which type of liability represents salaries already earned by employees but not yet paid by the business?
Salaries payable
Which type of liability represents utilities (e.g., electricity, water, telephone, internet, cable TV, etc.) already used but not yet paid?
Utilities payable
Test your knowledge of liabilities with this quiz! Learn about accounts payable, notes payable, and interest payable. Improve your understanding of these financial obligations and their impact on a company's balance sheet.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
