Which Is Not an Example of a Financial Liability

question 29

Multiple Choice

Which is not an example of a financial liability?

• A)Payment to supplier for raw material received.
• B)Obligation to repay a US dollar bank loan.
• C)Obligation under a finance lease.
• D)Obligation under a customer loyalty program.

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Definitions:

Working Capital

A financial metric representing the operational liquidity available to a business, calculated as current assets minus current liabilities.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if the stock is undervalued or overvalued.

Analytical Tools

Instruments or techniques used to analyze data or financial information, often for business or economic forecasting.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including balance sheet, income statement, and cash flow statement.