Most companies first recognise the liability related to the acquisition of goods at the time when the goods are received by the company.

Question

Quizplus · Accepted Answer

This statement is true. Companies typically recognize the liability related to the acquisition of goods at the time when the goods are received. This is because the company has an obligation to pay for the goods and owes the supplier for the amount of the purchase.

Most Companies First Recognise the Liability Related to the Acquisition