Is Unearned Income a financial Liability?
No, Unearned Income is not a financial liability
Reason:
Since it is not an obligation to pay. Two essential conditions for financial liability are
1) It must be settled into cash
2)It must a contractual obligation, not a legal obligation.
Point to ponder:
Any liability which is settled into cash provided that it is a contractual obligation is a financial liability.
For the Same purpose, Tax liability is not a financial liability as it is a legal obligation and not a contractual obligation
No, Unearned Income is not a financial liability
Reason:
Since it is not an obligation to pay. Two essential conditions for financial liability are
1) It must be settled into cash
2)It must a contractual obligation, not a legal obligation.
Point to ponder:
Any liability which is settled into cash provided that it is a contractual obligation is a financial liability.
For the Same purpose, Tax liability is not a financial liability as it is a legal obligation and not a contractual obligation
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