Which of the following is not an example of a settlement of a liability?
A) cash payment.
B) provision of services.
C) owner contribution.
D) creditor waiving their rights to the obligation.

Question

Quizplus · Accepted Answer

Owner contribution would result in an increase in equity rather than settling a liability. The other options (cash payment, provision of services, creditor waiving their rights to the obligation) all represent ways in which a liability could be settled.

Which of the Following Is Not an Example of a Settlement