Which of the Following Is NOT a Characteristic of a Liability

question 12

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:

Probability Distribution

A mathematical function that gives the likelihoods of various possible results in an experiment.

Binomial Distribution

A probability distribution that describes the number of successes in a fixed number of independent trials, with each trial having only two possible outcomes.

Binomial Random Variable

A type of random variable that follows the binomial distribution, representing the number of successful outcomes in a fixed number of trials.

Binomial Experiment

A statistical experiment that satisfies four conditions: fixed number of trials, independent trials, only two possible outcomes, and constant probability of success.