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 these are True.
Correct Answer:
Verified
Q21: Accounts payable:
A) Are amounts owed to suppliers
Q24: Liabilities:
A) Must be certain.
B) Must sometimes be
Q28: Known liabilities:
A) Include accounts payable, notes payable,
Q31: Amounts received in advance from customers for
Q36: A contingent liability:
A) Is always of a
Q37: Unearned revenues are:
A) Also called deferred revenues.
B)
Q38: Obligations due to be paid within one
Q47: Contingent liabilities can be:
A) Probable.
B) Remote.
C) Reasonably
Q51: A payroll register is a cumulative record
Q57: A payroll register usually shows the pay
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