Which of the following would not be defined as a liability under the Conceptual Framework?

Question

Quizplus · Accepted Answer

While a liability is defined as a present obligation arising from past events, which results in an outflow of economic resources, option D is a contingent liability which depends on a future event (achieving sales over a certain level) and hence cannot be categorized as a liability. Options A, B, and C are all examples of liabilities.

Which of the Following Would Not Be Defined as a Liability