Question

The liabilities division should contain what accounts? A. 21 Accounts Payable—Bellhaven Bank 22 P. Woodsley—Capital B. 21 Accounts Payable—Bellhaven Bank 22 Accounts Payable—Taylor Investments C. 21 22 D. 21 Accounts Payable—Bellhaven Bank 22 Merchant’s Bank

Answer 1

Liabilities are defined as company's debt or obligation. Normally, these are the bills that are due to the creditors and suppliers. So the answer is letter B. 21 Accounts Payable—Bellhaven Bank 22 Accounts Payable—Taylor Investments. Since both of the account titles are accounts payable which are normally found in the liabilities section. Accounts payable arises when a company purchases goods or services on account.