Which of the following descriptions would not fit the definition of a liability?
A)Obligation to deliver services for which payment was received in advance
B)Result of past transaction
C)Future obligation for future salary payments
D)Present obligation for future payment

Question

Quizplus · Accepted Answer

Future obligation for future salary payments is not a liability because it does not arise from a past transaction or event. Liabilities are present obligations resulting from past events.

Which of the Following Descriptions Would Not Fit the Definition