A Future Commitment Is NOT Considered a Liability Unless a Present

question 2

True/False

A future commitment is NOT considered a liability unless a present obligation also exists.

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Definitions:

Disposable Income

Financial assets available to households for expenditure and savings after income taxes.

Inventory Investment

The net change in physical inventory levels for businesses over a certain period, indicating how much companies are spending to stock goods.

Inventory

The complete quantity of products and materials kept in inventory by a company, meant for sale or to be used in manufacturing.

Interest Rate

The piece of a loan that accumulates interest for the borrower, often specified as a yearly percentage of the loan's existing outstanding balance.