Which of the following events does not create a liability?
A)Buying goods and services on credit
B)Obtaining a short-term loan
C)Issuing long-term debt
D)Remitting sales tax to the government

Question

Quizplus · Accepted Answer

Initially,the company records each liability at the amount of cash a creditor would accept to settle the liability immediately after a transaction or event creates the liability.The sales tax collected by the company is reported as a current liability until it is forwarded (or remitted)to the government.

Which of the Following Events Does Not Create a Liability