Question

Which is NOT a liability?

A. Debt owed by a business
B. Debt that must be paid within the current year
C. Debt that must be paid after the current year
D. Machines, vehicles, furniture and appliances

Answer 1

D

Explanation:

current liability is money owed to suppliers in the form of accounts payable . Current liabilities are typically settled using current assets, which are assets that are used up within one year.

Answer 2

D. Machines, vehicles, furniture, and appliances are not considered liabilities. Liabilities are obligations or debts that a business owes to others. They are usually in the form of loans or accounts payable and represent money that must be paid in the future.

Machines, vehicles, furniture, and appliances are assets, which are resources that a business owns and that have monetary value. Assets can be sold to generate cash or used to produce goods or provide services. While assets can be used to secure loans, they do not represent a debt or obligation that must be paid in the future like a liability