If a liability is not properly classified, it will have an effect on the:

Name: If a liability is not properly classified, it will have an effect on the:
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Question

Quizplus · Accepted Answer

Both the quick and current ratio will be affected if a liability is not properly classified, as it can impact the calculation of current liabilities and, therefore, the ratios that include them. The total dollars of liabilities and current assets may also be affected, but this is not as directly linked to the misclassification of a liability.

If a Liability Is Not Properly Classified, It Will Have