Which is not a required characteristic for a liability to be recognized?
A) Transfer
B) Service potential
C) Nonavoidable
D) Incurred

Question

Quizplus · Accepted Answer

Service potential is not a characteristic required for a liability to be recognized. Liabilities are recognized based on the obligation to transfer economic resources as a result of past events, and they are typically unavoidable and already incurred. Service potential is more relevant to assets, which provide future economic benefits.

Which Is Not a Required Characteristic for a Liability to Be