Which of the Following Is not a Financial Liability

question 3

Multiple Choice

Which of the following is not a financial liability?

• A)notes payable
• B)deferred revenue
• C)bank loans payable
• D)mortgages payable

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Definitions:

Premium Account

An account credited with the amount by which a security is issued above its par value, featuring benefits or terms superior to those of standard accounts.

Unearned Liability

An obligation that arises when a business receives payment for goods or services that have not yet been delivered or performed, also known as deferred revenue.

Bonds Payable

A financial accounting term for the outstanding debt a company owes to bondholders, to be paid at a future date.

Warrants

Long-term options issued by a company that grant the holder the right to purchase company shares at a specific price before a specified date.