Which of the following would not be included as a liability on a corporate balance sheet?
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A. B. C. D. E.Explanation
Marketable securities are not a liability; it represents the value of a company's investment in stocks bonds and money market instruments.
The correct answer is D. Marketable securities.
A liability represents an obligation or debt owed by a company to external parties. Liabilities are recorded on a corporate balance sheet to reflect the company's financial obligations. Let's analyze each option to determine which one would not be included as a liability on a corporate balance sheet:
A. Accrued liabilities: Accrued liabilities are expenses that a company has incurred but has not yet paid. These may include items such as wages, taxes, or interest. Since these represent obligations that the company has not fulfilled, they are considered liabilities and would be included on the balance sheet.
B. Current portion of long-term debt: Long-term debt refers to borrowings that are due beyond one year. However, if a portion of the long-term debt is expected to be paid within one year, it is classified as the current portion of long-term debt. This current portion represents a liability that will come due in the near term and should be included on the balance sheet.
C. Accounts payable: Accounts payable represent amounts owed by a company to its suppliers or creditors for goods or services received but not yet paid. This is a common liability and would be included on the balance sheet.
D. Marketable securities: Marketable securities refer to financial instruments that are readily tradable and can be converted into cash quickly. Examples include stocks, bonds, and other investments. Marketable securities are classified as assets rather than liabilities since they represent ownership interests or investments held by the company.
E. Notes payable: Notes payable represent formal written promises to repay borrowed funds at specified future dates. These are contractual obligations that create a liability for the company and would be included on the balance sheet.
In summary, among the given options, the item that would not be included as a liability on a corporate balance sheet is D. Marketable securities. Marketable securities are considered assets rather than liabilities.