Which of the Following Statements About Liabilities Is NOT True

question 54

Multiple Choice

Which of the following statements about liabilities is NOT true?

• A) An intention to repair a machine in 6 months' time does not give rise to a liability.
• B) If a liability is to be reliably measured,estimation procedures cannot be used.
• C) For a liability to exist,the entity must not be able to avoid the sacrifice of economic resources.
• D) A liability is a present obligation arising from past events.

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Definitions:

Nitrogen

a chemical element with symbol N and atomic number 7, essential for life, making up a significant part of Earth's atmosphere.

Simple Organic Molecules

Simple Organic Molecules are molecules composed of carbon along with other elements like hydrogen, oxygen, and nitrogen, serving as the basic building blocks for more complex organic substances.

Oparin

A scientist known for his hypothesis on the origin of life, proposing that life on Earth developed through a process of chemical evolution in a primordial soup of organic molecules.

Haldane

A principle named after J.B.S. Haldane, suggesting that the rate at which a gas is absorbed by a liquid is proportional to the pressure of the gas above the liquid, provided the gas does not react with the solvent.