One example of a liability that is not a financial liability is
A) notes payable.
B) unearned revenue.
C) bonds payable.
D) financial lease.

Question

One example of a liability that is not a financial liability is 
A) notes payable.
B) unearned revenue.
C) bonds payable.
D) financial lease.

Quizplus · Accepted Answer

Unearned revenue is a liability that represents advance payments collected by a company for goods or services that have not yet been delivered or earned. It is not a financial liability because it does not involve borrowing or financing activities. The other options listed (notes payable, bonds payable, financial lease) all involve financial liabilities because they represent debts or obligations that involve interest payments or borrowing.

One Example of a Liability That Is Not a Financial