Which of the Following Is Not a Characteristic of a Liability

question 73

Multiple Choice

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

• A) It represents a probable, future sacrifice of economic benefits.
• B) It must be payable in cash.
• C) It arises from present obligations to other entities.
• D) It results from past transactions or events.

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Definitions:

Marginal Revenue Product

The extra income produced by employing an additional unit of a production resource.

Cost Minimization

A strategy that companies employ to reduce their expenses and improve profitability without compromising the quality of their products or services.

Profit Maximization

The process by which a firm adjusts its production and sales strategies to achieve the highest possible profit under given conditions.

Purely Competitive

A market scenario where identical products are sold by many sellers, making it impossible for individual firms to influence market prices or conditions.