Which of the following is not a characteristic of a liability?
A)obligation always arises from past events
B)probably requires future sacrifice of resources
C)requires sacrifice of cash or other current asset
D)present obligation

Question

Quizplus · Accepted Answer

Liabilities do not always require a sacrifice of cash or other current asset. They can also be settled by providing goods or services, issuing equity securities, or other non-cash means. Obligation arising from past events, requiring future sacrifice of resources, and being a present obligation are all characteristics of liabilities.

Which of the Following Is Not a Characteristic of a Liability