Which of the Following Is an Example of a Liability

question 6

Multiple Choice

Which of the following is an example of a liability where there is no corresponding asset?

• A) a provision for decommissioning;
• B) a debenture issued by a listed company;
• C) a loan owing to a financial institution;
• D) a provision for warranties.

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Definitions:

Countertrade

The practice of using barter rather than money for making global sales.

Media Advertising

The use of various media channels, such as TV, radio, and digital platforms, to promote products, services, or brands to a wide audience.

Surplus

An excess of something, such as goods, services, or resources, beyond what is needed or used.

Balance of Trade

The difference in value between a country's imports and exports over a certain period.