Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Questions - Page 27: 16


The liabilities are Accounts payable, salaries and wages payable and dividends.

Work Step by Step

Accounts payable are the amount that a firm owes to someone, therefore it is a liability. Wages and Salaries Payable are the salaries that the firm owes to the workers, thus it is a liability. Dividends are also a liability because the firm owes that amount to the shareholders. Cash, accounts receivables, supplies and equipment are assets. Service revenue is a form of income. Rent expense is an expense.
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