One Example of a Liability That Is Not a Financial

question 106

Multiple Choice

One example of a liability that is not a financial liability is

• A) notes payable.
• B) unearned revenue.
• C) bonds payable.
• D) financial lease.

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Definitions:

Groceries

Items of food sold in a grocery store, including fresh produce, meats, dairy, and dry goods.

Order Instrument

A financial document or security that is payable to a specific person or entity and requires endorsement for transfer.

Transferred

Refers to the act of moving ownership, possession, or rights of an asset from one party to another.

Negotiated

The process of trying to reach an agreement through discussion and compromise on terms of a contract, price, or other business arrangements.