In the context of liabilities,present obligations may be:
A)constructive.
B)legal.
C)both a and b
D)formative.

Question

Quizplus · Accepted Answer

In the context of liabilities, present obligations can be both constructive and legal. Constructive obligations arise from past events or voluntary actions, while legal obligations arise from contractual or statutory requirements. Therefore, present obligations can fall under either category, making the correct answer choice (C) both a and b. "Formative" does not apply to liabilities, so answer choice (D) is incorrect.

In the Context of Liabilities,present Obligations May Be