Which Statement Is Correct Under the IFRS Definition for a "Liability

question 79

Multiple Choice

Which statement is correct under the IFRS definition for a "liability"?

• A)The obligating event must be probable before the liability can be recognized.
• B)The obligating event must be virtually certain before the liability can be recognized.
• C)A reliable measure of the obligation must exist before the liability can be recognized.
• D)A precise measure of the obligation must exist before the liability can be recognized.

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Definitions:

Monitoring

The act of observing, checking, or keeping a continuous record of a process or quality over time.

Regulatory

Pertaining to the imposition of rules, standards, and processes to control or manage behavior within a system.

Expressive

Demonstrating one's thoughts, feelings, or emotions openly and clearly through words, actions, or art.

Cognitive

Relating to the mental processes of perception, memory, judgment, and reasoning, as contrasted with emotional and volitional processes.