'A Present Obligation of an Entity Arising from Past Events

question 32

Multiple Choice

'A present obligation of an entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits,' is the generally acceptable definition of:

• A)an asset.
• B)equity.
• C)a liability.
• D)an expense.

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Definitions:

Strategic Benefits

Advantages that accrue to an organization through the implementation of strategies that improve competitiveness and ensure the achievement of goals.

Competitive Benefits

Advantages offered by a company to its employees that go beyond the standard benefits package, designed to attract and retain talent by meeting or exceeding what competitors offer.

Financial Benefits

Advantages gained in monetary terms, such as increased revenue, cost savings, or improved profit margins.

Tax Advantages

Financial benefits derived from tax laws, such as deductions or credits, which reduce the tax liability for individuals or businesses.