An asset is obtained at a cost. An asset provides future benefits. Liabilities must require the obligated enterprise to pay cash to a recipient entity. Liabilities must be legally enforceable. The identity of the recipient entity must be known to the obligated entity before the liability is recognized.
Liabilities represent an obligation that has arisen as the result of a previous transaction.
Shown below is a list of important organizations influential in financial accounting and reporting, followed by a list of statements describing the organizations or the organizations activities. You must match the letter preceding the organizations names with the descriptions by placing the appropriate letter in the space provided. Each letter may be used once, more than once, or not at all. This was the first organization in the U.S. to be given authority to issue pronouncements on accounting procedures and practice. They issued 51 Bulletins during their 21 year existence.