MENU
What does it mean if, at the end of an accounting period, a company has a debit balance in a liability account?
Suggested Answer: D
Get Premium CPP-Remote Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
11 comments · newest first
RE
Remedios
11 months ago
Not sure about that, seems a bit off to me.
PA
Patti
11 months ago
I agree, it sounds like they paid too much to a third party.
ME
Melissia
12 months ago
Wait, how can a liability have a debit balance?
KI
Kindra
12 months ago
I think it’s more about underdeposited taxes.
RO
Royal
12 months ago
Definitely means they overpaid a liability.
TH
Thad
1 year ago
I’m a bit confused; I thought a debit balance in liabilities meant they owed less than they should, but I can't remember the details.
JE
Jenelle
1 year ago
I practiced a similar question where a debit balance indicated an error in withholding, so I’m leaning towards option C.
JA
Janna
1 year ago
I think it might relate to overpayments, like option D, but I can't recall if that's the only scenario.
LE
Levi
1 year ago
I remember discussing how a debit balance in a liability account usually indicates something unusual, but I'm not sure what it specifically means here.
AL
Altha
1 year ago
I'm a bit unsure about this one. Is the business document data supposed to go in the header or the body? I need to double-check my notes on this pattern.
CH
Chau
1 year ago
I vaguely recall that abandonment options are a key part of project valuation. The response about the abandonment option sounds like it could be true.