One of your friends, Bob, is the owner of a tuck shop called Bobs Breads and the entity has a 31 December year-end.

Bob requires your assistance with the accounting element liabilities, as set out in the Conceptual Framework, and therefore he sent you the following queries:

Query 1	Do I have a liability if I have taken delivery of inventory today, 1 November 2022, but I am only legally required to pay the R1 000 for the inventory in 30 days time?
Query 2	Do I have a liability if I have taken delivery of inventory of R2 000 on 1 December 2022, paid cash for the inventory on delivery, and am legally required to send a thank you email to my supplier within 30 days of receiving this inventory?
Query 3	Do I have a liability if I have taken delivery of inventory of R3 000 on 1 December 2022, and am legally required to only pay the R3 000 in 5 years time?
Query 4	Do I have a liability today, if I have contracted and committed to taking delivery of inventory in two months time, and am legally required to pay R2 500, 60
Query 5	Do I have a liability if I verbally informed my employees, that I will pay them an extra R10 000 (a bonus) in 30 days time for work they have completed? Even though despite making this announcement I have not signed a contract to make this bonus payment. I am also not legally required to pay the bonus but on the other hand, my employees will most likely resign if I do not keep my word and pay them the bonus.

REQUIRED: With reference to the definition of the liability element, as set out by the Conceptual Framework, for each of Queries 1 to 5 above, discuss the following:

1. Confirm whether Bob has a liability, Yes or No.

2. Apply the information in the query to the definition of the liability element, in order to explain/motivate why you conclude that Bob has/does not have a liability.

Mark allocation: 1.1 Query 1 (3 marks) 1.2 Query 2 (2 marks) 1.3 Query 3 (4 marks) 1.4 Query 4 (4 marks) 1.5 Query 5 (3 marks)