Which Statement Is Correct Under the IFRS Definition for a "Liability

question 79

Multiple Choice

Which statement is correct under the IFRS definition for a "liability"?

• A)The obligating event must be probable before the liability can be recognized.
• B)The obligating event must be virtually certain before the liability can be recognized.
• C)A reliable measure of the obligation must exist before the liability can be recognized.
• D)A precise measure of the obligation must exist before the liability can be recognized.

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Definitions:

Utility Function

A mathematical representation that ranks consumer preferences over a set of goods or services, often leading to an optimal choice.

Consumption

The usage of goods and services by households or individuals, forming a major component of aggregate demand in an economy.

Income

Income refers to the money received by an individual or entity, typically in the form of wages, salaries, or returns from investments, over a specified period of time.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.