A Liability Is Defined in Conceptual Framework As

question 20

Multiple Choice

A liability is defined in conceptual framework as:

• A) possible obligation of the entity, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
• B) a possible obligation of the entity expected to arise from future events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
• C) a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
• D) a present obligation of the entity arising from past events, the settlement of which is expected to result in an inflow to the entity of resources embodying economic benefits.

---

Definitions:

Board of Governors

The leading body of a central banking system, such as the Federal Reserve in the United States, responsible for overseeing the nation's monetary policy.

Appointed

Selected or designated for a position or duty, typically by an authority, rather than through election.

Federally Chartered Banks

Banks that are authorized to operate by the federal government rather than by state governments, often subject to different regulations and oversight.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining financial stability.