Which of the following does not represent a liability?
A)An obligation for estimated income taxes payable
B)Interest that has accrued on a bank loan
C)An obligation to pay for goods purchased,payable one year after purchase
D)An obligation for future purchases of goods

Question

Quizplus · Accepted Answer

An obligation for future purchases of goods does not represent a liability because it is not an existing obligation or debt. It is merely a potential expense that may be incurred in the future. A liability, on the other hand, represents an existing obligation or debt that the company is obligated to pay. Options A, B, and C represent different types of liabilities.

Which of the Following Does Not Represent a Liability