CAF-1 · Chapter 9 · Question 1 of 15
According to the Conceptual Framework, which of the following best defines a 'liability'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A present obligation of the entity to transfer an economic resource as a result of past events.
Explanation
The Conceptual Framework defines a liability strictly as a present obligation of the entity to transfer an economic resource as a result of past events.
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