Which of these is a liability, not because it is a legal claim but because of past industry or business behaviour?
A) money borrowed from an associate company
B) trade creditors
C) deposit on services received in advance
D) provision for employee bonuses

Question

Quizplus · Accepted Answer

Provision for employee bonuses is a liability due to past business behavior, as it reflects an obligation to pay employees based on past performance or agreements, even if not legally required.

Which of These Is a Liability, Not Because It Is