Fundamentally,liabilities Are Measured in Conformity with Which of the Following

question 50

Multiple Choice

Fundamentally,liabilities are measured in conformity with which of the following?

• A)The revenue principle.
• B)The matching principle.
• C)The cost principle.
• D)The materiality constraint.

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Definitions:

Primary Liability

The main or first layer of responsibility for fulfilling a financial or legal obligation.

Secondary Liability

Legal responsibility that arises from aiding, facilitating, or contributing to a wrongful act committed by another party.

Contractual Liability

This is the legal obligation parties have under a contract to fulfill the terms of the agreement.

Warranty Liability

The legal obligation of a seller to ensure that the goods or services sold meet certain expressed or implied standards of quality and reliability.