Asked by
Vignesh Sridhar
on Oct 15, 2024
Verified
All of the following statements regarding liabilities are true except:
A) A liability is a probable future payment of assets or services.
B) Potential 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) Liabilities can involve uncertainty in whom to pay.
Future Wages
Compensation that an employee is expected to earn in upcoming periods for services to be rendered.
Liabilities
Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other forms of economic benefit.
- Cultivate an extensive understanding of liabilities, featuring known, estimated, and contingent liabilities, and comprehend the standards for their recognition.
Verified Answer
AR
Learning Objectives
- Cultivate an extensive understanding of liabilities, featuring known, estimated, and contingent liabilities, and comprehend the standards for their recognition.