The common characteristic of both assets and liabilities is that they both
A) provide an economic resource.
B) result from a past transaction or event.
C) represent a present responsibility.
D) represent contractual or other rights.

Question

Quizplus · Accepted Answer

Both assets and liabilities result from a past transaction or event. An asset is something that an entity owns or has control over as a result of past events and from which future economic benefits or service potential are expected to flow to the entity. A liability is an obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits or service potential. While assets provide economic resources, liabilities represent a present responsibility and do not necessarily represent contractual or other rights.

The Common Characteristic of Both Assets and Liabilities Is That