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:

Informed Citizen

An individual who is knowledgeable about community, national, and global affairs, enabling them to participate effectively in civic matters.

Society

A group of individuals who live in a structured and interdependent community with shared laws and institutions.

Economics

The field of social science focusing on the decision-making processes used by individuals, governments, businesses, and countries in distributing limited resources to fulfill their endless desires.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant changes in technology, economy, and society.