The all-events test requires that
I.All events have occurred that determine a liability exists
II.The due date for payment of the liability has been established
III.The amount of a liability is determined with reasonable accuracy.

A)Only statement I is correct.
B)Statement I and II are correct.
C)Statement I and III are correct
D)Statements I, II, and III are correct.
E)Only statement III is correct

Question

The all-events test requires that
I.All events have occurred that determine a liability exists
II.The due date for payment of the liability has been established
III.The amount of a liability is determined with reasonable accuracy.
​
A)Only statement I is correct.
B)Statement I and II are correct.
C)Statement I and III are correct
D)Statements I, II, and III are correct.
E)Only statement III is correct

Quizplus · Accepted Answer

The all-events test for recognizing a liability requires that all events have occurred to establish the fact that a liability exists (I) and that the amount of the liability can be determined with reasonable accuracy (III). The due date for payment (II) is not a requirement for the all-events test.

The All-Events Test Requires That