The criteria for liability recognition include(s):
A)the item represents a present obligation, not a potential future commitment or intent.
B)the obligation must exist as a result of a past transaction or exchange, called the obligating event.
C)the obligation must require a probable future economic resource that the firm has little or no discretion to avoid.
D)the obligation must have a relevant measurement attribute that the firm can quantify with sufficient reliability.
E)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of the criteria listed are necessary for the recognition of a liability. The liability must represent a present obligation that arises from a past transaction or event, and requires probable future economic resources to be expended by the firm. The amount of the liability must be measurable with sufficient reliability to be reported on the financial statements.

The Criteria for Liability Recognition Include(s)