Which of the following best describes 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 the entity is required to settle in the future through the transfer of assets or services.

Which of the Following Best Describes Liabilities