Final answer:
In business, a liability is a debt or obligation, such as loans or accounts payable. Owner's equity is not a liability; it's the owner's interest in the company's assets after liabilities are subtracted, reflecting the net worth.
Step-by-step explanation:
The question asks to identify which option is not an example of a liability. In the realm of accounting and business, a liability represents an obligation of a company or an individual to pay money to others. It is essentially anything that can be considered a debt or an obligation. Common examples of liabilities include loans, accounts payable, mortgages, deferred revenues, and accrued expenses.
Some options that might be given for such a question could include:
- Bank loan
- Credit card debt
- Accounts payable
- Owner's equity
In this list, 'Owner's equity' would not be considered a liability. Rather, it represents the owner's stake in the company, which is the value of the assets after deducting liabilities. It's akin to the net worth of the business from the perspective of the owner.