Accounting for IGCSE & O level - Accounting Procedures (Section 19 - No. 40)
Which of the following is a characteristic of a liability?
It represents an economic resource controlled by the entity.
It is an obligation of the entity arising from past events.
It is the owner's residual interest in the assets of the entity.
It increases owner's equity.
Explanation
A liability is an obligation that arises from a past event.
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