alleryStart learning →A liability, as the Framework puts it, is a present:
AObligation to transfer a resource
BDuty to pay dividends every year
CDuty to repay loans within a year
DPlan to incur a cost in future
Answer & Solution
Correct answer: A. Obligation to transfer a resource
A liability is a present obligation to transfer an economic resource arising from a past event, not merely a planned future cost.
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