Which of These Would Not Be Defined as a Liability

question 52

Multiple Choice

Which of these would not be defined as a liability under the Conceptual Framework?

• A) A loan from a financial institution.
• B) Money owing to a supplier for goods purchased.
• C) Wages owing to employees.
• D) An arrangement to pay a bonus commission to salespersons for achieving sales over a certain level.

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Definitions:

Capability Index

A statistical tool used to determine the capability of a manufacturing process to meet its specified limits.

Process

A series of actions or steps taken in order to achieve a particular outcome or result.

Capability Index

A statistical measure that quantifies the performance of a process in relation to specified limits or specifications.

Measurements

The act of determining the size, quantity, or degree of something typically using specific instruments or techniques.