Which of These Is a Liability, Not Because It Is

question 50

Multiple Choice

Which of these is a liability, not because it is a legal claim but because of past industry or business behaviour?

• A) money borrowed from an associate company
• B) trade creditors
• C) deposit on services received in advance
• D) provision for employee bonuses

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Definitions:

Scoria Cone

A small, steep-sided volcanic cone built of loose, fragmented cinder-like material, typically basaltic in composition.

Composite

In geology, composite refers to rocks or materials made up of various distinct components or layers, often seen in volcanic activity.

Shield

A large, flat area of ancient, hard rock on the Earth's surface, often found in continental interiors and known for its geological stability.

Viscous Magma

Magma that does not flow easily.