Which of the following are a possible basis for classifying liabilities?
I. Source
II. Liquidity
III. Timing of settlement
IV. Whether secured or unsecured

Question

Quizplus · Accepted Answer

Liabilities can be classified based on various criteria including their source (e.g., loans vs. accounts payable), liquidity (how quickly they need to be settled), timing of settlement (short-term vs. long-term), and whether they are secured or unsecured. This makes all the options (I, II, III, and IV) valid bases for classifying liabilities.

Which of the Following Are a Possible Basis for Classifying