Which of the following statements is true?

A) One of the essential characteristics of a liability is that the transaction or other event obligating the entity will probably occur in the future.
B) To be a liability, there must be a duty or responsibility that obligates a particular entity.
C) To qualify as a liability, there must be a legally enforceable claim.
D) In order to have a liability, the identity of the recipient must be known.

Question

Rassa Chamling · Accepted Answer

Final Answer : B, Explanation :  Liabilities are defined by the presence of a duty or responsibility that obligates a particular entity, regardless of whether the obligation is legally enforceable or whether the recipient's identity is known. This encompasses a broad range of obligations, including those that are expected to be settled in the future.

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