Asked by
Gianna Vinciguerra
on Oct 28, 2024
Verified
Which of the following best describes liabilities?
A) Possible debts or obligations of an entity as a result of future transactions,which will be paid with assets or services.
B) Possible debts or obligations of an entity as a result of past transactions,which will be paid with assets or services.
C) Probable debts or obligations of an entity as a result of future transactions,which will be paid with assets or services.
D) Probable debts or obligations of an entity as a result of past transactions,which will be paid with assets or services.
Liabilities
Financial obligations or debts owed by a company to external parties, which must be settled over time through the transfer of assets, provision of services, or other means.
Future Transactions
Financial dealings or agreements set to occur at a future date, often involving the purchase or sale of goods, services, or assets.
- Identify the differences between liabilities that entail future cash outflows and those that do not necessitate such payments.
Verified Answer
MW
Learning Objectives
- Identify the differences between liabilities that entail future cash outflows and those that do not necessitate such payments.