Identify the item which is not necessarily a liability.
A) bank overdraft
B) provision for holiday pay
C) loan
D) None of the above, i.e. all are necessarily liabilities.

Question

Quizplus · Accepted Answer

While a bank overdraft and provision for holiday pay are both examples of liabilities, a loan may not be a liability depending on the terms of the loan agreement. If the loan is structured as an investment, with the expectation of a return on the funds provided, it may not be considered a liability.

Identify the Item Which Is Not Necessarily a Liability