Which of the Following Is Not a Liability

question 11

Multiple Choice

Which of the following is not a liability?

• A)The amount owing to a supplier
• B)A warranty sold with a product
• C)The amount owing for next month's rent
• D)A cash deposit received on a sale for next month

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Definitions:

Total Assets

The sum of all assets owned by a company, including current, fixed, intangible, and financial assets.

Sales-Type Lease

A leasing arrangement where the lessor recognizes sales revenue at the lease inception, reflecting the sale of an asset.

Operating Lease

A lease agreement allowing for the use of an asset without ownership, typically with shorter terms and cancelable by the lessee under specific conditions.

Property, Plant, and Equipment

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.