Liability are arisen from which of the following events?
Correct answer: C. Past event
- A. Present event
- B. Future event
- C. Past event
- D. None of them
Explanation
A liability results from a past transaction or event that creates a present obligation, such as purchasing goods on credit. A merely expected future event does not normally create a liability yet.
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
Which is the most important characteristic that all assets of a business have?
What is the basic accounting equation?
Which of the following is a liability?
An asset must be _______ by the business to be shown as an asset in its "balance sheet"
The gross decrease in economic benefits for the business are what?
________ is the gross inflow of economic benefits?