_____ are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of a past event or transaction.
A)Assets
B)Liabilities
C)Shareholders' equity
D)Revenues
E)Expenses

Question

Quizplus · Accepted Answer

Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future as a result of a past event or transaction. Assets are economic resources controlled by the entity as a result of past events, revenues are inflows of economic resources arising from activities of the entity, expenses are outflows of economic resources arising from activities of the entity, and shareholders' equity represents the residual interest in the assets of the entity after deducting liabilities.

_____ Are Probable Future Sacrifices of Economic Benefits Arising from Present