In Order for a Liability to Exist

question 16

Multiple Choice

In order for a liability to exist,

• A) there must be a past transaction or event.
• B) the exact amount must be known.
• C) the identity of the party to whom the liability is owed must be known.
• D) there must be an obligation to pay cash in the future.

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Definitions:

Number Format

A setting that determines how numbers are displayed, such as decimal places, currency symbols, or percentages.

Format Cells Dialog Box

A feature in spreadsheet software allowing users to change cell appearance, including formats for numbers, text, borders, and colors.

Decimal Places

The number of digits to the right of the decimal point in a number, indicating its precision.

Fill Handle

A tool in spreadsheet software used to automatically fill in cells with data based on the pattern of existing data.