Which of the following is not a characteristic of a liability?

A) It represents a probable, future sacrifice of economic benefits.

B) It must be payable in cash.

C) It arises from present obligations to other entities.

D) It results from past transactions or events.

Answer: B

Which of the following is not a liability?

A) Notes payable.

B) Current portion of long-term debt.

C) An unused line of credit.

D) Deferred revenue.

Answer: C

Liabilities are defined as:

A) Resources owed by an entity as a result of past transactions.

B) Resources owned by an entity as a result of past transactions.

C) Selling products and services to customers in the current period.

D) Costs of running the business in the current period.

Answer: A