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What Are the Essential Characteristics of a Liability Under the Definition

question 9

Multiple Choice

What are the essential characteristics of a liability under the definition in the Conceptual Framework?
i. Settlement requiring an outflow of resources embodying economic benefits.
ii. A present obligation to an external party.
iii. A legal debt.
iv. The obligation must have resulted from past events.


Definitions:

Rail

A mode of transportation that involves the movement of goods or passengers on trains along a set of tracks.

Carrier

A company or individual that provides transportation services for goods or people.

Straight Bill Of Lading

A document issued by a carrier that specifies the goods being transported are to be delivered to the specified party, without endorsement.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

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