PRC-1 · Chapter 1 · Question 17 of 100
According to the conceptual framework, a 'liability' is defined as:
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 standard definition of a liability under the conceptual framework is a present obligation of the entity to transfer an economic resource as a result of past events.
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