Under the Conceptual Framework,which of These Is Not a Characteristic

question 39

Multiple Choice

Under the Conceptual Framework,which of these is not a characteristic of a liability?

• A)It is expected to result in an outflow of economic resources
• B)It must be a legal debt
• C)It must result from a past transaction or event
• D)It must be a present obligation of the entity

Understand how to read and interpret summaries of ledger accounts.

Learn how to calculate retained earnings from ledger account information.

Apply accounting principles to analyze financial statements.

Understand the fundamentals of accrual-basis accounting and its importance in reporting financial activity accurately.

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Definitions:

Neoclassical Economics

An approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.

Economic Behavior

The actions and decisions individuals, households, and organizations make regarding the allocation and use of resources.

Behavioral Economics Approach

A method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.

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