Which of the Following Does Not Meet the FASB's Definition

question 60

Multiple Choice

Which of the following does not meet the FASB's definition of a liability?

• A) The signing of a three-year employment contract at a fixed annual salary
• B) An obligation to provide goods or services in the future
• C) A note payable with no specified maturity date
• D) An obligation that is estimated in amount

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Definitions:

Environmental Secondhand Smoke

Exposure to tobacco smoke in shared environments, posing health risks to non-smokers.

Tobacco

A plant whose leaves are harvested and processed for smoking, chewing, or sniffing, often containing nicotine.

Omega-3 Fatty Acids

Essential fats found in fish and some plant oils, known for their heart health and anti-inflammatory benefits.

Cardiovascular Disease

Diseases impacting the heart or blood vessels, covering coronary artery disease, hypertension, and stroke, are considered in this category.