32
QuizMultiple Choice

N/A — Exam

Question 32 • Advanced Financial Algebra

In the ABC Manufacturing scenario, which list only includes liabilities?

Answer
A
accounts receivable, mortgage payable, inventory
B
loans payable, cash, equipment
C
loans payable, mortgage payable, taxes payable
D
equipment, property, taxes payable

Explanation

Liabilities are amounts a business owes. Loans payable, mortgage payable, and taxes payable are all debts or obligations, so the list containing only liabilities is “loans payable, mortgage payable, taxes payable.” Cash, equipment, property, accounts receivable, and inventory are assets, which is why the other lists do not qualify.

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