Which of the Following Is Not a Characteristic of a Liability

question 78

Multiple Choice

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

• A) It will be settled by a future transfer of assets.
• B) The company has no discretion to avoid the future sacrifice.
• C) The obligating event has already happened.
• D) All of these are characteristics of a liability.

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Definitions:

Discounted Price

A reduced price compared to the original selling price, often due to promotions, clearance, or the application of discounts.

Bond Quoted

The listed price or value of a bond in the financial markets, typically expressed as a percentage of its face value.

Stock Value

The price or worth of a particular stock, determined by market conditions and the company's financial health.

Convertible Bond

A type of bond that the holder can convert into a specific number of shares of the issuer's common stock, under certain conditions.