Which of the Following Statements Regarding Liabilities Is True

question 19

Multiple Choice

Which of the following statements regarding liabilities is true?

• A) They must arise through a contractual obligation.
• B) They may be attributable to a future transaction or event.
• C) The duty or responsibility obligates the entity.
• D) The entity often has reasonable discretion to avoid the obligation.

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Definitions:

Phosphate Groups

Functional groups consisting of a phosphorus atom covalently bonded to four oxygen atoms, important in energy transfer and molecular structure of nucleic acids.

Enzyme

Biological molecules that act as catalysts, speeding up chemical reactions in living organisms.

Digesting

The process of breaking down food into smaller components that can be absorbed into the bloodstream and used by the body.

Active Site

Region of an enzyme where the substrate binds and where the chemical reaction occurs.