Which Is Not a Required Characteristic for a Liability to Be

question 83

Multiple Choice

Which is not a required characteristic for a liability to be recognized?

• A) Transfer
• B) Service potential
• C) Nonavoidable
• D) Incurred

---

Definitions:

General Journal

A comprehensive listing of all a company’s financial transactions, recorded in chronological order.

Cash Investment

Placement of funds into a venture or asset with the expectation of generating income or profit.

Cash Account

An account that reflects the amount of cash a company has on hand or in bank accounts, fundamental to the management of cash flows and liquidity.

Debit Balance

A situation where the debit side of an account exceeds the credit side, commonly observed in asset accounts and expense accounts.