Which of the following defines liabilities?
A) Possible debts or obligations of an entity as a result of future transactions which will be paid with assets or services.
B) Possible debts or obligations of an entity as a result of past transactions which will be paid with assets or services.
C) Probable debts or obligations of an entity as a result of future transactions which will be paid with assets or services.
D) Probable debts or obligations of an entity as a result of past transactions which will be paid with assets or services.

Question

Quizplus · Accepted Answer

Liabilities are defined as probable debts or obligations that arise from past transactions or events, which are expected to be settled by the transfer of assets or provision of services.

Which of the Following Defines Liabilities