Which of the following is an example of a liability where there is no corresponding asset?
A) a provision for decommissioning;
B) a debenture issued by a listed company;
C) a loan owing to a financial institution;
D) a provision for warranties.

Question

Quizplus · Accepted Answer

A provision for decommissioning is a liability that arises when an entity is obliged to remove or dismantle a long-lived asset at the end of its life. This liability does not have a corresponding asset because the decommissioning costs are not considered to be an asset.

Which of the Following Is an Example of a Liability