Which of the Following Is a Financial Liability

question 49

Multiple Choice

Which of the following is a financial liability?

• A)A magazine publisher's obligation to provide the magazine monthly for an agreed upon period.
• B)Warranties.
• C)Accounts payable.
• D)Income taxes payable.

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Definitions:

Operating Lease

Usually a shorter-term lease where the lessor is responsible for insurance, taxes, and upkeep. Often cancellable on short notice.

Sale And Leaseback

A financial lease in which the lessee sells an asset to the lessor and then leases it back.

Maintenance

The routine care and servicing by personnel for the purpose of maintaining equipment or facilities in satisfactory operating condition.