Question

Which of the following is a liability? a. bonus paycheck b. credit card balance c. investment fund d. savings account Please select the best answer from the choices provided

Answer 1

Answer:

Option b) A credit card balance

Step-by-step explanation:

The credit card balance shows the amount you owe to the bank for purchases using credit card.

Credit card is meant for purchases without paying money actualy and after a fixed period paying to the bank full amount outstanding.

Periodically, all credit card transactions will be listed and sent to the customer with a due date within which the amount is to be paid.

IF amount is not paid within due date, a penalty will be charged besides interest for the delay.

Thus credit card balance is a liability since it is the amount due or amount outstanding to be paid to the bank within a certain period.  This can be treated as current liability

Answer 2

Answer:

The answer is B

Step-by-step explanation:

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