Multiple Choice
A constructive obligation arises when
A) the entity is legally obligated to honour the obligation.
B) the entity makes an unconditional promise to pay money in the future.
C) past or present company practice reveals the entity acknowledges a potential economic burden.
D) the entity has a conditional obligation which becomes unconditional if an uncertain future event occurs.
Correct Answer:
Verified
Correct Answer:
Verified
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