Liabilities

Question 1

Accounts Payable

Answer 1

Amounts due to suppliers.

Question 2

Unearned Revenue

Answer 2

Cash or assets received in advance from customers for services to be provided in the future.

Question 3

Wages Payable

Answer 3

Amounts due to employees.

Question 4

Bank (Overdraft)

Answer 4

Liability account where the bank lends the business cash in the short-term.

Question 5

Notes Payable

Answer 5

Often long-term debt; a written promise to pay a definite sum of cash to another party at fixed future date(s).

Question 6

Bonds Payable

Answer 6

Similar to Notes Payable, generally long-term debt involving multiple creditors; often more complex than standard notes payable.