All of the following statements regarding uncertainty in liabilities are true except:
A. A company only records liabilities when it knows whom to pay, when to pay, and how much to pay.
B. Liabilities can involve uncertainty in whom to pay.
C. A company can be aware of an obligation but not know how much will be required to settle it.
D. A company can have an obligation of a known amount to a known creditor but not know when it must be paid.
E. 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.
Answer: A
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