The Criteria for Recognition of a Liability Does Not Include

question 46

Multiple Choice

The criteria for recognition of a liability does not include which of the following?

• A)The obligation represents a present obligation.
• B)The obligation exists as a result of a past transaction or exchange, called the obligating event.
• C)The obligation requires the probable future sacrifice of an economic resource that the firm has little or no discretion to avoid.
• D)The obligation has a relevant measurement attribute that the firm can quantify with sufficient reliability.
• E)The obligation represents a potential future commitment or intent.

---

Definitions:

Himalaya

A major mountain range in Asia, forming a barrier between the Plateau of Tibet to the north and the alluvial plains of the Indian subcontinent to the south.

Lithosphere

The rigid outer layer of the Earth, comprising the crust and the upper mantle, which is involved in tectonic processes like plate movements.

Earth's Peak

Geological high points on Earth's surface, such as mountains or hills, formed by various geological processes including tectonic movements and erosion.

Deformation

The process by which rocks change shape or position due to stress, heat, or pressure without breaking.