Which of the following is not necessarily a liability?
A)Provision for holiday pay.
B)Bank overdraft.
C)Loan to employee.
D)None of the above, i.e., all are necessarily liabilities.

Question

Quizplus · Accepted Answer

A loan to an employee could be an asset if the employee is expected to repay the amount borrowed. The provision for holiday pay and bank overdraft are both liabilities because they represent obligations to pay out funds in the future. Therefore, option D is incorrect as not all of the options listed are necessarily liabilities, making option C the correct answer.

Which of the Following Is Not Necessarily a Liability