Discussion Thread: Liabilities and Economic Sacrifices
Liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or to provide services to other entities in the future as a result of past transactions or events.
Do you agree or disagree with this statement? Why would a company consider a liability to be a sacrifice for the future growth? Explain your reasoning.
• Read: Revsine: Chapter 12
Read: Chapter 12 – Financial Instruments and Liabilities
BOOK:
Revsine, Collins, Johnson, Mittelstaedt, & Soffer: Financial Reporting and Analysis
