An Example of an Item That Is Not a Liability

question 29

Multiple Choice

An example of an item that is not a liability is

• A) Dividends payable in stock
• B) Advances from customers on contracts
• C) Accrued estimated warranty costs
• D) The portion of long-term debt due within one year

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Definitions:

Archie B. Carroll

A scholar notable for his contributions to corporate social responsibility, especially his pyramid model outlining the responsibilities of businesses.

Saudi Arabia

A country located in the Middle East, known for its vast oil reserves and as the birthplace of Islam.

Social Responsibility

The obligation of an entity, be it an organization or individual, to act for the benefit of society at large.

Legitimate Profit

Earnings obtained through legal and ethical business practices, reflecting a fair exchange of value.