A

Admin • 833K Points
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Q. A liability arises when:

  • (A) Cash is received
  • (B) Goods are sold
  • (C) Goods are purchased on credit
  • (D) Assets are depreciated
  • Correct Answer - Option(C)
  • Views: 20
  • Filed under category Accounting
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Explanation by: Admin

A liability is created when goods are purchased on credit and payment is pending.

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