All liabilities require that the company sacrifice resources at some time in the future.
BT: Comprehension

Question

Quizplus · Accepted Answer

Liabilities are obligations that a company owes to other parties, and they require the company to sacrifice resources (e.g. cash, inventory, services) at some point in the future to satisfy the obligation. Therefore, all liabilities require a future sacrifice of resources by the company.

All Liabilities Require That the Company Sacrifice Resources at Some