A liability may exist even if there is uncertainty about whom to pay, when to pay, or how much to pay.

Question

Quizplus · Accepted Answer

A liability is a present obligation of an entity arising from past events, the settlement of which is expected to result in an outflow of resources. The uncertainty regarding whom to pay, when to pay, or how much to pay does not prevent the existence of a liability. It may, however, affect the measurement and recognition of the liability.

A Liability May Exist Even If There Is Uncertainty About