Question

Of the following accounts which is not a liability account?

A. Accounts payable
B. Contributions owed to a company benefit plan
C. Employer share of payroll taxes
D. Union dues deducted from pay but not yet paid to union

Answer 1

Contributions owed to a company benefit plan is not a liability account as it represents a future asset or prepaid expense, not an amount the company owes to others.

Step-by-step explanation:

Of the following accounts, the one that is not a liability account is Contributions owed to a company benefit plan. This is because contributions owed to a company benefit plan are actually company assets or prepaid expenses.

As they are future benefits the company will receive. Liability accounts typically include obligations the company has to pay, such as Accounts payable, the Employer share of payroll taxes, and Union dues deducted from pay but not yet paid to the union.

These are all obligations that represent amounts the company owes to other entities.