A liability is a past obligation of the entity arising from present events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

Name: A liability is a past obligation of the entity arising from present events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
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Question

Quizplus · Accepted Answer

A liability is a present obligation of the entity arising from past events, not the other way around.

A Liability Is a Past Obligation of the Entity Arising