Statement 1:Liability is a present obligation of an enterprise. Statement 2: Liability is payable to a party. Statement 3:A liability arises from past transactions or events Statement 4: The settlement of a liability will result to inflow of enterprise resources embodying economic benefits Only two statements are correct. None of the statements is correct. Only one statement is wrong. All statements are correct.
Statement 1:Liability is a present obligation of an enterprise. Statement 2: Liability is payable to a party. Statement 3:A liability arises from past transactions or events Statement 4: The settlement of a liability will result to inflow of enterprise resources embodying economic benefits Only two statements are correct. None of the statements is correct. Only one statement is wrong. All statements are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1:Liability is a present obligation of an enterprise.
Statement 2: Liability is payable to a party.
Statement 3:A liability arises from past transactions or events
Statement 4: The settlement of a liability will result to inflow of enterprise resources embodying economic benefits
Statement 2: Liability is payable to a party.
Statement 3:A liability arises from past transactions or events
Statement 4: The settlement of a liability will result to inflow of enterprise resources embodying economic benefits
Only two statements are correct.
None of the statements is correct.
Only one statement is wrong.
All statements are correct.
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