Which of the Following Best Describes a Liability

question 80

Multiple Choice

Which of the following best describes a liability?

• A) Liabilities are a form of share capital.
• B) Liabilities are future economic benefits to which a company is entitled.
• C) Liabilities are accounts receivable of the company.
• D) Liabilities are economic obligations to creditors to be paid at some future date by the company.

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Definitions:

Probabilities

A measure expressing the likelihood of occurrence of a given event, typically defined on a scale from 0 to 1, where 0 means the event cannot occur and 1 indicates certainty.

Expected Value

A statistical concept that calculates the weighted average of all possible values for a random variable.

Probabilities

A numerical assessment ranging from 0 to 1 that quantifies how likely an event is to take place.

Invest

To assign financial resources with the aim of achieving a return or profit.