An Example of an Item Which Is Not a Liability

question 78

Multiple Choice

An example of an item which is not a liability is

• A) dividends payable in stock.
• B) advances from customers on contracts.
• C) accrued estimated warranty costs.
• D) the portion of long-term debt due within one year.

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Definitions:

Parent Ltd Indirect Interest

An ownership interest held by a parent company in a subsidiary through another subsidiary rather than directly.

Multiple Consolidation

The process of integrating financial statements from multiple subsidiaries into one aggregated set of financial statements for the parent company.

Ownership Interests

The rights and shares held by an entity or individual in another company, evidencing an ownership stake.

Direct and Indirect Ownership Interests

Holdings in a company that can be straightforward (direct) or through another entity (indirect).