Before a Liability Can Be Recognised on the Balance Sheet,it

question 16

Short Answer

Before a liability can be recognised on the balance sheet,it must satisfy the recognition criteria namely that it must be ______________ that an outflow of resources embodying economic benefits will result and that the amount can be measured reliably.

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Definitions:

Common Shareholder

An individual or entity that owns shares in a company, granting them ownership equity and usually voting rights.

Special Cases

Situations or scenarios that deviate from the norm, requiring unique considerations or treatments in various contexts such as law, economics, or computing.

Share of Stock

A unit of ownership in a corporation that entitles the shareholder to a portion of the corporation's earnings and assets.

Share Value

The financial worth of a single share of a company's stock.