Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A)One of the essential characteristics of a liability is that the transaction or other event obligating the entity will probably occur in the future.
• B)To be a liability, there must be a duty or responsibility that obligates a particular entity.
• C)To qualify as a liability, there must be a legally enforceable claim.
• D)In order to have a liability, the identity of the recipient must be known.

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Definitions:

Market Model

A theoretical construct that describes the functioning of a market, including the roles of buyers and sellers and the determination of prices.

Pure Monopoly

A market structure in which a single seller controls all production of a good or service with no close substitutes, leading to high barriers to entry for other firms.

Imperfect Competition

A market structure in which firms have some control over the price of their products, due to factors like product differentiation, fewer sellers, or barriers to entry.

Standardized Products

Goods or services that have uniform characteristics and quality, regardless of the producer or provider.