Under the Conceptual Framework, Which of the Following Is Not

question 13

Multiple Choice

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

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

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Definitions:

Economic Resource

Any good or service that can be used to produce other goods and services, including labor, land, capital, and entrepreneurship.

Factory Workers

Individuals employed in industrial production settings, operating machinery or assembling goods.

Retail Store

A business establishment that sells goods or services directly to the public, typically from a fixed location or online platform.

Production Possibilities Curve

A graphical representation illustrating the maximum output possibilities for two goods, given a set of inputs and technological efficiency.