A financial liability is a

A) contractual obligation to receive cash in the future.
B) contractual obligation to pay cash in the future.
C) contractual obligation to issue common shares in the future.
D) contractual obligation to issue a mortgage payable.

Contractual Obligation

A legally binding agreement between parties that specifies actions or non-actions that are required to be completed.

Pay Cash

The act of making a payment for goods or services with physical currency or through a cash equivalent transaction.