Which of the following is not a characteristic of a liability?
A) It will be settled by a future transfer of assets.
B) The company has no discretion to avoid the future sacrifice.
C) The obligating event has already happened.
D) All of these are characteristics of a liability.

Question

Quizplus · Accepted Answer

All the options listed (A, B, and C) are indeed characteristics of a liability. Liabilities are defined by the need for a future transfer of assets or services, an obligation that the company cannot avoid, and an event that has already occurred creating the obligation.

Which of the Following Is Not a Characteristic of a Liability