"A present obligation of the entity arising from past events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits" is the definition of:
A)an expense
B)a liability
C)equity
D)revenue

Question

Quizplus · Accepted Answer

This definition matches the characteristics of a liability, which is an obligation to transfer economic resources in the future as a result of past events. Expenses are decreases in economic resources from ongoing operations, revenue is increases in economic resources from ongoing operations, and equity represents the residual interest in the assets of the entity after liabilities are deducted.

"A Present Obligation of the Entity Arising from Past Events,the