Which of the following is not a liability?
A) An unused line of credit.
B) Estimated income taxes.
C) Sales tax collected from customers.
D) Advances from customers.

Question

Quizplus · Accepted Answer

An unused line of credit is not a liability because it represents the maximum amount of credit that a company is allowed to borrow, but it is not actually borrowed until the company decides to draw on it. The other options listed (estimated income taxes, sales tax collected from customers, and advances from customers) are all examples of actual liabilities that a company owes to outside parties.

Which of the Following Is Not a Liability