Which of the Following Is Not a Characteristic of a Liability

question 1

Multiple Choice

Which of the following is not a characteristic of a liability?

• A)There is a probable future sacrifice of resources.
• B)There is a fixed payment amount and payment date.
• C)There is little discretion to avoid the obligation.
• D)The event giving rise to the liability has already occurred.

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Definitions:

Inventory Valuation

The method or process of calculating the cost/value of inventory that a business holds at any given time, which affects cost of goods sold and profitability.

Merchandising Company

A business entity that purchases finished goods and resells them to consumers to earn a profit without altering the physical form of the goods.

Perpetual Inventory System

A continuous inventory system is a technique for managing stock that immediately logs the transaction of inventory sales or purchases using computerized point-of-sale systems and enterprise asset management programs.

Purchasing Merchandise Inventory

The process of acquiring goods for resale, including the selection, ordering, and receipt of merchandise.