'A Present Obligation of an Entity Arising from Past Events

question 32

Multiple Choice

'A present obligation of an entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits,' is the generally acceptable definition of:

• A)an asset.
• B)equity.
• C)a liability.
• D)an expense.

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Definitions:

Metabolize

The biochemical process by which organisms convert substances into energy or materials necessary for cellular function and growth.

Taste Buds

Sensory organs located on the tongue that are responsible for perceiving different types of tastes.

Action Potentials

Brief electrical impulses that are the means by which information is transmitted along neurons.

Monozygotic Twins

Twins that develop from a single fertilized egg, sharing nearly 100% of their genetic material.