Question

A________ is a probable future sacrifice of economic benefits arising from present obligations to transfer assets or provide services as a result of past transactions or events.

Answer 1

Answer:

Liability

Explanation:

A liability is a probable future sacrifice of economic benefits arising from present obligations to transfer assets or provide services as a result of past transactions or events. Liabilities usually result in the outward flow of economic resources. Examples are loan payable, accounts payable, accrued expenses, deferred revenue etc. Liabilities are usually recognized as credit balances in the balance sheet and are classified into current and non-current based on the probable timing of the sacrifice of economic benefits.