VAT Is a Liability Because

question 14

Multiple Choice

VAT is a liability because:
Please select all that apply.

• A) There is a present obligation arising from past events.
• B) There is expected to be a transfer of an economic resource.
• C) It represents a right that has the potential to produce economic benefits.
• D) It can be measured in such a way that a faithful representation of its monetary value is achieved.

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Definitions:

Transactions

Business activities or exchanges that affect the financial position of a company, involving the transfer of goods, services, money, or titles.

Investing Activities

Financial actions involving the purchase and sale of long-term assets and investments, part of a company's cash flow statement.

Sale of Land

A transaction involving the transfer of ownership of land from one party to another.

Receipts

Written acknowledgments of having received something, typically used for transactions and proof of payment.