Which of the following does not create a liability?
A)Buying goods and services on credit.
B)Obtaining a short-term loan.
C)Issuing long-term debt.
D)Remitting sales tax to the government.

Question

Quizplus · Accepted Answer

Remitting sales tax to the government does not create a liability as it is a transaction where a liability is being settled. The other options involve obtaining funds or incurring an obligation that needs to be paid back in the future, hence creating a liability.

Which of the Following Does Not Create a Liability