The most common type of liability is:
A) One that comes into existence due to a loss contingency.
B) One that must be estimated.
C) One that comes into existence due to a gain contingency.
D) One to be paid in cash and for which the amount and timing are known.

Question

Quizplus · Accepted Answer

The most common type of liability is one to be paid in cash and for which the amount and timing are known. This includes accounts payable and notes payable, where the obligations are clear and not contingent on uncertain future events.

The Most Common Type of Liability Is