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

Question

Quizplus · Accepted Answer

A provision for decommissioning is a liability for future costs to dismantle or remove an asset, but the asset itself may not be recognized on the balance sheet.

Which of the Following Is an Example of a Liability