Under the Conceptual Framework, which of these is not a characteristic of a liability?
A) It must result from a past transaction or event.
B) It must be a legal debt.
C) It is expected to result in an outflow of economic resources.
D) It must be a present obligation of the entity.

Question

Quizplus · Accepted Answer

While it is common for liabilities to involve legal obligations, it is not a required characteristic under the Conceptual Framework. The other three characteristics are necessary for an item to be classified as a liability.

Under the Conceptual Framework, Which of These Is Not a Characteristic