Probable future sacrifices of economic benefits arising from an entity's present obligations to transfer resources or provide services to other entities in the future as a result of past transactions or events define
A)assets.
B)liabilities.
C)equity.
D)retained earnings.

Question

Quizplus · Accepted Answer

The description given in the question matches the definition of a liability, which is a present obligation of an entity to transfer resources or provide services to other entities in the future as a result of past transactions or events. Liabilities are typically associated with future sacrifices of economic benefits. Assets (A) represent probable future economic benefits, equity (C) is the residual interest in assets after deducting liabilities, and retained earnings (D) represent the accumulated earnings of a company that have not been distributed as dividends to shareholders.

Probable Future Sacrifices of Economic Benefits Arising from an Entity's