Asked by Tyasia Lynah on May 07, 2024
Verified
A liability that is satisfied through the payment of cash is referred to as a denominational liability.
Liability
A financial obligation or debt owed by a company to third parties, to be settled through the transfer of assets, provision of services, or other economic benefits.
- Fathom the idea and classification of liabilities, underscoring the differentiation between monetary and non-monetary liabilities.
Verified Answer
JR
jessica remorenkoMay 09, 2024
Final Answer :
False
Explanation :
A denominational liability refers to a liability that is payable in a specific currency or denomination, such as USD or EUR, rather than being satisfied through the payment of cash. Cash payments can be used to settle denominational liabilities, but they are not the only means of settlement.
Learning Objectives
- Fathom the idea and classification of liabilities, underscoring the differentiation between monetary and non-monetary liabilities.
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