Which of the Following Characteristic Is Required for a "Liability

question 26

Multiple Choice

Which of the following characteristic is required for a "liability" under IFRS Framework?

• A)A past obligation.
• B)A present obligation.
• C)An unknown obligation.
• D)A future obligation.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing wear and tear, obsolescence, or a decline in value.

Utilities Payable

A liability account recording amounts owed for utilities such as electricity, water, and gas that have been consumed but not yet paid for.

Utilities Expense

Costs associated with the consumption of utilities such as electricity, gas, water, and sewer services by a business or household.

Supplies

Supplies refer to the materials and items that are used in the daily operations of a business, office, or institution, often consumable and requiring regular replenishment.