Which is an example of a liability?
A)The decision to borrow $150,000 from the ABC Bank on January 15,2012.
B)Withdrawing $10,000 from the operating line of credit on January 15,2012.
C)Selecting the supplier to provide the raw materials for the manufacturing process.
D)Choosing the site for a future plant expansion from a list of several possible choices.

Question

Quizplus · Accepted Answer

Withdrawing $10,000 from the operating line of credit creates a liability, as it represents an obligation to repay the borrowed amount.

Which Is an Example of a Liability