Which of the following is not considered a part of the definition of a liability?
A) Unavoidable obligation.
B) Transaction or other event creating the liability has already occurred.
C) Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.
D) Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities.

Question

Quizplus · Accepted Answer

The definition of a liability does not specifically include the expectation of liquidation requiring the use of current assets or creating other current liabilities. This is more related to the classification of liabilities rather than their definition.

Which of the Following Is Not Considered a Part of the Definition