Which of the Following Statements About Liabilities Is NOT True

question 28

Multiple Choice

Which of the following statements about liabilities is NOT true?

• A) An intention to repair a machine in six months' time does not give rise to a liability.
• B) If a liability is to be reliably measured,estimation procedures cannot be used.
• C) For a liability to exist,the entity must not be able to avoid the sacrifice of economic resources.
• D) A liability is a present obligation arising from past events.

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