Final answer:
The false statement about liabilities is that they do not include wages owed to employees. wages payable are indeed a liability. also, cash received in advance of a service creates a liability called unearned or deferred revenue.
Step-by-step explanation:
In regards to the question Which of the following statements is not true about liabilities, the statement that is not true is c. Liabilities do not include wages owed to employees of the company. In fact, wages owed to employees are considered a liability and are often recorded as 'wages payable' or 'salaries payable' in a company's balance sheet. Additionally, the statement d. Cash received before a service is performed does not create a liability is also incorrect. When cash is received before a service is performed, it is recorded as 'unearned revenue' or 'deferred revenue,' which represents a liability because the service has yet to be provided.
On a bank's balance sheet, liabilities are what the bank owes to others, such as the deposits made by customers. A liability represents an entity's financial debts or obligations that arise during the course of business operations. It is crucial to correctly identify and manage liabilities, as they play a key role in the financial health and stability of a business. A T-account is a visual representation that separates a firm's assets from its liabilities, aiming to maintain balance where assets always equal liabilities plus net worth.