A Company Cannot Have a Liability If the Amount of the Obligation

question 95

True/False

A company cannot have a liability if the amount of the obligation is unknown.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed a company by its clients or customers who have promised to pay for the products at a later date.

Commercial Paper

A written promise from one company to another to pay a specific amount of money.