APA Exam CPP-Remote Topic 3 Question 61 Discussion

Actual exam question for APA's CPP-Remote exam

Question #: 61
Topic #: 3

[All CPP-Remote Questions]

What does it mean if, at the end of an accounting period, a company has a debit balance in a liability account?

AThe company has underdeposited taxes withheld from EE wages.

BThe company has not yet paid the third party.

CThe company has withheld too much from the EE.

DThe company has paid to a third party more than was withheld from the EE.

Show Suggested Answer

Suggested Answer: D

by Donte at Nov 15, 2024, 01:34 PM

Limited Time Offer

25%

Off

Get Premium CPP-Remote Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kallie

25 days ago

A debit balance in a liability account? That's like a unicorn sighting! Gotta be B) The company has not yet paid the third party. Simple as that.

upvoted 0 times

...

Sylvia

28 days ago

I'm pretty sure it's D) The company has paid to a third party more than was withheld from the EE. Debit in a liability account? That's just bad accounting.

upvoted 0 times

Nidia

5 days ago

Yeah, that makes sense. It's definitely not a good sign for the company.

upvoted 0 times

...

Ciara

12 days ago

I think you're right, D) The company has paid to a third party more than was withheld from the EE.

upvoted 0 times

...

Maile

28 days ago

Haha, what kind of company would have a debit balance in a liability account? That's like having negative debt! I'm going with B, it's the only one that makes sense.

upvoted 0 times

...