12. To be recorded as a liability, an item must meet three specific conditions. Two of them are: it must involve probable future sacrifice of economic resources by the entity, and it must be a present obligation that arose as a result of a past transaction. Which one of the following is the third condition? The item must reduce the market value of the recording entity. It must involve a transfer of resources to another entity. It must involve the expenditure of cash now or in the future. It must not cause total liabilities to exceed total assets