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.

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.

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Read: Revsine: Chapter 12

Read: Chapter 12 – Financial Instruments and Liabilities

BOOK: Revsine, Collins, Johnson, Mittelstaedt, & Soffer: Financial Reporting and Analysis