Question

Which of the following would not appear as a liability on the balance sheet?

1) Accounts Payable
2) Long-term Debt
3) Inventory
4) Accrued Expenses

Answer 1

Inventory is not considered a liability on the balance sheet because it is an asset.

Step-by-step explanation:

The liability that would not appear on the balance sheet is Inventory. The balance sheet is an accounting tool that lists assets and liabilities, and inventory is considered an asset, not a liability.

Liabilities represent the debts and obligations of a company, while assets are the resources owned by the company.