The Common Characteristic of Both Assets and Liabilities Is That

question 135

Multiple Choice

The common characteristic of both assets and liabilities is that they BOTH

• A)provide an economic benefit.
• B)result from a past transaction or event.
• C)represent a present responsibility.
• D)represent contractual or other rights.

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Definitions:

Commission

A form of payment to an employee based on the amount of sales that the employee generates, typically a percentage of the sales total.

Profit-Sharing Plans

A compensation program in which employees receive a share of the company's profits in addition to their regular salary, usually based on the company's earnings over a specific period.

Organization's Performance

A measure of how effectively and efficiently an organization meets its goals and objectives.

Financial Difficulties

A situation where individuals or entities face challenges in managing their money, often leading to debt or bankruptcy.