Which of the following is not a liability?
A)Notes payable
B)Current portion of long-term debt.
C)An unused line of credit.
D)Unearned revenue.

Question

Quizplus · Accepted Answer

An unused line of credit is not a liability because it represents the maximum borrowing capacity a company has, but it is not actually debt until the company uses the line of credit to borrow funds. A, B, and D are all liabilities because they represent debts owed by the company to external parties.

Which of the Following Is Not a Liability