Which of the Following Best Describes a Liability

question 111

Multiple Choice

Which of the following best describes a liability?

• A) Liabilities are future economic benefits to which a company is entitled.
• B) Liabilities are a form of share capital.
• C) Liabilities are economic obligations to creditors to be paid at some future date by the company.
• D) Liabilities are accounts receivable of the company.

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Definitions:

Hyperthymesia

An extremely rare condition where an individual possesses an extraordinarily detailed autobiographical memory, remembering an unusual number of life events.

Encoding

The process by which information is transformed into a format that can be stored in memory.

Retrieval

The process of recalling information, experiences, and memories stored in the brain.

Storage

The process of retaining encoded information over time in the memory.