Despite the uncertainty in relation to the exact amount to be paid and the actual timing of the payment, which of the following is still regarded as a liability?
A)Deposit on services received in advance.
B)Provision for employee bonuses.
C)Accounts payable.
D)Money borrowed from an associate company.

Question

Quizplus · Accepted Answer

A provision for employee bonuses is a liability because it represents an obligation to pay employees in the future, even if the exact amount and timing are uncertain.

Despite the Uncertainty in Relation to the Exact Amount to Be