All of the Following Statements Regarding Uncertainty in Liabilities Are

Multiple Choice

All of the following statements regarding uncertainty in liabilities are true except:

A) Liabilities can involve uncertainty in whom to pay.
B) A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date.
C) A company can have an obligation of a known amount to a known creditor but not know when it must be paid.
D) A company only records liabilities when it knows whom to pay,when to pay,and how much to pay.
E) A company can be aware of an obligation but not know how much will be required to settle it.