Which one of the following types of liabilities is not currently recognized on balance sheets?
A)Deferred credits
B)Constructive obligations
C)Equitable obligations
D)Contingent liabilities

Question

Quizplus · Accepted Answer

Equitable obligations are not recognized on balance sheets as they are moral or ethical obligations rather than legal obligations. Deferred credits represent amounts received in advance for goods or services that will be delivered in the future. Constructive obligations arise from past events but have not yet resulted in a legal obligation. Contingent liabilities are potential obligations that depend on a future event occurring or not occurring.

Which One of the Following Types of Liabilities Is Not