Which Is Not a Characteristic of a Liability

question 98

Multiple Choice

Which is not a characteristic of a liability?

• A)There will be a probable future transfer or use of assets.
• B)There is little or no discretion to avoid the future sacrifice.
• C)The obligating transaction or event must have already happened.
• D)A legally enforceable claim must be present.

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Definitions:

Assets

Resources owned by a business or individual with economic value expected to provide future benefits.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Excise Tax

A tax imposed on specific goods, services, or transactions, often with the aim of reducing their consumption or raising government revenue.

Lung Cancer

A type of cancer that originates in the lungs, often associated with smoking and exposure to hazardous pollutants.