For a liability to exist:
A)a past transaction or event must have occurred.
B)the exact amount must be known.
C)the identity of the party must be known.
D)an obligation to pay cash in the future must exist.

Question

Quizplus · Accepted Answer

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

For a Liability to Exist