Which of the Following Is Not an Essential Characteristic of a Liability

question 35

Multiple Choice

Which of the following is not an essential characteristic of a liability?

• A) It has arisen as a result of a past transaction or event.
• B) It represents an internal claim on the entity's assets.
• C) It represents a present obligation to another entity.
• D) It requires the transfer of an economic resource to another entity.

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Definitions:

Negative Assessment

A critical or unfavorable evaluation of something.

Ethno-Cultural Group

A community of people who share common cultural and ethnic identity, including language, traditions, customs, and often a shared history.

Ascribed Status

A social position a person receives at birth or takes on involuntarily later in life, such as race, gender, and family background.

Socially Disadvantaged

Describes individuals or groups who experience inequality and reduced opportunities due to economic, social, or cultural barriers.