Which of the Following Statements Best Describes a Liability

question 99

Multiple Choice

Which of the following statements best describes a liability?

• A) Any obligation, whether enforceable or not, is a liability.
• B) A liability is an enforceable economic burden or obligation.
• C) A liability is a legal economic benefit.
• D) Deferred income taxes are always shown as liabilities.

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Definitions:

Absolute Changes

The difference in the value of a variable observed at two points in time, without consideration for relative change over time.

Percentage Changes

A way to express a change in a variable as a fraction of its original value, often represented as a percent.

Y-axis

The vertical axis in a graph or plot, typically containing the range of values for a variable being measured or observed.

Depict Data

Depicting data involves presenting information in a visual format, such as charts or graphs, to facilitate easier understanding and analysis.