The loss of a determinate thing through a fortuitous event will not extinguish an obligation, except:1 pointWhen the debt proceeds from a criminal offense and the creditor is in mora accipiendi.When the law provides that there shall be liability even in case of loss through a fortuitous event.When the debtor has incurred in delay.When the nature of the obligation requires the assumption of risks.

The debtor's promise to the creditor was terminated or canceled when the specific object was lost without their fault. Nonetheless, the debtor is required to pay the whole cost of the item, including any damages, if the particular item was lost as a result of his carelessness.

A financial liability is derecognised whenAnswer :The obligation in the contract is discharged   The obligation in the contract is cancelled   The obligation in the contract  expires   All of the above

PROBLEM 1: TRUE OR FALSE 1. A liability can result from past, present or future events, 2. A liability can exist even if the party to whom the obligation is owed is not specifically identified. 3. A long-term debt that is maturing within 12 months from the end of the reporting period is a current liability. 4. A currently maturing debt that the entity's management intends to refinance is presented as noncurrent. 5. Trade payables are normally presented as current liabilities. 6. Amortized cost liabilities are subsequently measured at the present value of the cash outflows from the instrument. 7. Entity A's long-term loan can be accelerated by the creditor if Entity A fails to maintain a current ratio of at least 2:1. At the reporting date, Entity A's current ratio is 3:1. The loan should be classified as a current liability. 8. A deferred tax liability that is expected to reverse within 12 months after the reporting period is presented as a current liability. 9. Liabilities for cash dividends are normally presented as current liabilities unless the dividends are clearly due beyond twelve months after the reporting period. 10. Financial liabilities, except those that are classified as FVPL., are initially measured at fair value plus transaction costs.

A company should accrue a liability for a loss contingency if it is at least reasonably possible that assets have been impaired and the amount of potential loss can be reasonably estimated.Group of answer choicesFalseTrue

The failure to act. This sometimes causes liability. It may not cause liability in some cases because a duty of care may not exist unless a particular relationship exists that obligate the defendant to act. E.g. A lifeguard has a duty to rescue, and a bystander does not.Choose matching termCausationNonfeasanceCitizen's ArrestTorts