All of the following statements regarding liabilities are true except:
A) A liability is a probable future payment of assets or services.
B) Unearned future wages to be paid to employees should be recorded as liabilities.
C) For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services.
D) Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
E) All of the responses are correct.
Correct Answer:
Verified
Q21: Accounts payable:
A) Are amounts owed to suppliers
Q24: Liabilities:
A) Must be certain.
B) Must sometimes be
Q35: Sales taxes payable:
A) Is an estimated liability.
B)
Q43: Known liabilities:
A)Include accounts payable, notes payable, and
Q46: When the number of withholding allowances claimed
Q47: Debt guarantees:
A)Are never disclosed in the financial
Q49: Unearned revenues are:
A)Also called deferred revenues.
B)Amounts received
Q51: A payroll register is a cumulative record
Q52: Contingent liabilities must be recorded if:
A)The future
Q53: Contingent liabilities can be:
A)Probable.
B)Remote.
C)Reasonably possible.
D)Estimable.
E)All of the
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