Liabilities are which of the following?
Correct answer: B. Obligations
- A. Resources
- B. Obligations
- C. Future benefits
- D. Expenses
Explanation
Liabilities are present obligations arising from past events that will require settlement through an outflow of economic resources. They are therefore obligations, not resources or future benefits.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
________ is the gross inflow of economic benefits?
The gross decrease in economic benefits for the business are what?
An asset must be _______ by the business to be shown as an asset in its "balance sheet"
An asset posses which of the following?
________ is a separate legal entity that Total capital can be divided in many shares.
_________ is the first phase of accounting cycle?