Which of the following is not an attribute of a liability?
A) Present obligation to transfer resources to another entity.
B) The transfer is unavoidable by the entity.
C) The transfer results in reduced economic benefits to the entity making the transfer.
D) The event creating the responsibility has not yet occurred.

Question

Quizplus · Accepted Answer

All other options are attributes of a liability. However, a liability must have already occurred or exist at the balance sheet date, therefore the event creating the responsibility must have already occurred. Therefore, option D is not an attribute of a liability.

Which of the Following Is Not an Attribute of a Liability