For a liability to exist,
A) there must be a past transaction or event.
B) the exact amount must be known.
C) the identity of the party to whom the liability is owed must be known.
D) there must be an obligation to pay cash in the future.

Question

Quizplus · Accepted Answer

A liability arises from a past transaction or event that creates a present obligation, regardless of whether the exact amount or the identity of the party is known, or if the obligation involves cash.

For a Liability to Exist