Asked by Miranda Delph on Apr 28, 2024
Verified
A liability may exist even if there is uncertainty about whom to pay,when to pay,or how much to pay.
Liability Uncertainty
Liability uncertainty involves not knowing the exact amount or timing of future outflows due to existing obligations.
- Learn about the components and definition of a liability.
Verified Answer
MA
Myranda ArandaRubioApr 29, 2024
Final Answer :
True
Explanation :
A liability is an obligation or debt that a company owes to others, and it exists regardless of any uncertainty about the payment terms. Even if there is uncertainty about the payee, payment date, or payment amount, the liability still exists until resolved.
Learning Objectives
- Learn about the components and definition of a liability.