Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 44

For the following questions, circle the best response.

All of the following give rise to a liability except

a. money borrowed from a bank.

b. interest costs resulting from the passage of time.

c. employees working before being paid.

d. products sold with warranties.

e. negotiations to make a purchase on credit.

Step 1 of 6

(a)

Money borrowed from a bank is an actual financial transaction that will give rise to a liability.