A liability can be described as:
A) Something an entity owes, the value of which just needs to be estimated.
B) Something an entity owes which will result in the payment of cash by the entity.
C) Something an entity controls which it uses to generate cash.
D) Something an entity owns for long term use within its business.

Question

Quizplus · Accepted Answer

A liability is an obligation that an entity owes, which typically results in the payment of cash or other resources in the future.

A Liability Can Be Described As