Which of the following liabilities creates no expense on the part of the company?
A)Employment Insurance payable
B)Canada Pension Plan payable
C)GST payable
D)estimated warranty payable

Question

Quizplus · Accepted Answer

GST payable is a liability that represents the amount of sales tax collected from customers on behalf of the government. It does not create an expense for the company because it is simply collected and then remitted to the government, not an expense incurred by the company in its operations.

Which of the Following Liabilities Creates No Expense on the Part