Which of the Following Correctly Describes a Liability

question 66

Multiple Choice

Which of the following correctly describes a liability?

• A)An obligation of the entity
• B)An investment the owners have made
• C)An economic resource that provides future benefits
• D)An economic sacrifice made to earn revenue

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Definitions:

Negotiability

The ability of a financial instrument to be transferred from one party to another with the title passing legally to the transferee.

United States

A federal republic consisting of fifty states, a federal district, and various territories, characterized by its democratic government and diverse population.

Comparative Negligence

A principle of tort law that compares the fault of each party involved in an accident and allocates the damages accordingly.

Forgeries

The act of fraudulently making or altering a document or item with the intent to deceive.