Which of the following statements regarding liabilities is true?
A. They must arise through a contractual obligation.
B. They may be attributable to a future transaction or event.
C. The duty or responsibility obligates the entity.
D. The entity often has reasonable discretion to avoid the obligation.
Answer:C
Which of the following statements regarding liabilities is true?
A. They must arise through a contractual obligation. B. They may be attributable to a future transaction or event. C. The duty or responsibility obligates the entity. D. The entity often has reasonable discretion to avoid the obligation.