Which of the Following Is NOT a Liability

question 11

Multiple Choice

Which of the following is NOT a liability?

• A) Allowance for doubtful debts
• B) Provision for employee entitlements
• C) Accounts payable
• D) Provision for warranties

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Definitions:

Liquidated Damages Provision

A contractual clause that determines the amount of damages payable if one of the parties breaches the agreement.

Penalty Provision

A clause in a contract or law that specifies a penalty for non-compliance or violation of its terms.

Non-Breaching Seller

A party in a contract that has not failed to fulfill any term of the agreement, in contrast to a breaching party who has failed to perform as promised.

Remedies

Remedies in legal terms refer to the means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.