Question

which of the following accounts is a liability?
options:

• accounts payable
• retained earnings
• service revenue
• accounts receivable
• i dont know yet

Explanation:

To determine which account is a liability, we analyze each option:

• Accounts Payable: Represents amounts owed to creditors, which is a liability (obligation to pay).
• Retained Earnings: Part of equity (accumulated profits), not a liability.
• Service Revenue: Income from services, part of revenue (equity - related), not a liability.
• Accounts Receivable: Amounts owed to the company (asset), not a liability.

Answer:

A. Accounts Payable