Which is not a characteristic of a liability

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Problem 1: Which of the following is not a characteristic of a liability?

A) There is a probable future sacrifice of resources.
B) There is a fixed payment amount and payment date.
C) There is little discretion to avoid the obligation.
D) The event giving rise to the liability has already occurred.

Problem 2: Loans that require payments of principal plus interest are referred to as

A) Lines of Credit.
B) instalment loans.
C) bank overdraft.
D) Bonds Payable.

Problem 3: A loan amortization table for a mortgage is used to

A) show the allocation for each payment between the interest and principal portions.
B) determine the depreciation expense.
C) calculate the effective interest rate over the life of the loan.
D) none of the above.

Reference no: EM132953380

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