Which of the following is not considered a part of the definition of a liability?

Which of the following is not considered a part of the definition of a liability?



a. Unavoidable obligation.
b. Transaction or other event creating the liability has already occurred.
c. Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.
d. Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities.


Answer: Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities.


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