Which of the Following Is Not a Characteristic of a Liability

question 6

Multiple Choice

Which of the following is not a characteristic of a liability?

• A)It involves a responsibility to another company.
• B)The company has little or no discretion to avoid the future sacrifice.
• C)The sacrifice contributes directly or indirectly to the company's future cash inflows.
• D)The transaction obligating the company has already occurred.

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Definitions:

Stress

A physical, mental, or emotional factor that causes bodily or mental tension, which can come from any event or thought that makes someone feel frustrated, angry, or nervous.

Weight Loss

The process of losing body mass by reducing body fat and/or lean mass.

Sodium

A chemical element (Na) that is essential for human health, playing roles in nerve function and fluid balance but can be harmful in excess.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in the body's fight-or-flight response.