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.

Question

Quizplus · Accepted Answer

A liability arises from a past transaction or event that creates an obligation, but the exact amount or identity of the party owed does not need to be known, nor does it have to involve a future cash payment.

In Order for a Liability to Exist