Which of the Following Characteristic Is Required for a Liability

question 47

Multiple Choice

Which of the following characteristic is required for a liability under IFRS Framework?

• A)Arises from a past event.
• B)Arises from a non-financial transaction.
• C)Arises from a future transaction.
• D)Arises from a forecasted transaction.

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Definitions:

Net Income

The total earnings or profit a company generates, calculated as revenue minus expenses, taxes, and deductions.

Total Assets

The sum of all resources owned by a company that have economic value and can be converted into cash, including property, equipment, and cash itself.

Price-Earnings Ratio

A valuation metric comparing a company's current share price to its per-share earnings, indicating investor expectations of growth.

Market Price

The existing cost for purchasing or selling an asset or service.