Which of the following is not a characteristic of a liability?
A)There is a probable future sacrifice of resources.
B)There is a fixed payment amount and payment date.
C)There is little discretion to avoid the obligation.
D)The event giving rise to the liability has already occurred.

Question

Quizplus · Accepted Answer

A liability does not necessarily have a fixed payment amount and payment date. It can have a range of possible payment amounts and payment dates depending on the terms of the obligation. However, it does have the other characteristics listed, including a probable future sacrifice of resources, little discretion to avoid the obligation, and the event giving rise to the liability has already occurred.

Which of the Following Is Not a Characteristic of a Liability