Which of the following types of liabilities do not represent obligations on the firm to transfer assets in the future, but are past transactions being postponed from the income statement until future periods?
A)Deferred credits
B)Constructive obligations
C)Equitable obligations
D)Contingent liabilities

Question

Quizplus · Accepted Answer

Deferred credits refer to transactions where the liability is created in the current period but the transfer of assets is postponed until future periods. Therefore, it does not represent an obligation to transfer assets in the future. Constructive obligations, equitable obligations, and contingent liabilities all represent obligations on the firm to transfer assets in the future.

Which of the Following Types of Liabilities Do Not Represent