Which of the Following Is the Most Appropriate Way to Display

question 9

Multiple Choice

Which of the following is the most appropriate way to display liabilities on the balance sheet?

• A)nearness to maturity
• B)relative likelihood of payment
• C)order of magnitude
• D)alphabetically by payee

---

Definitions:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products.

Production

The process of creating goods and services through the combination of labor, materials, and technology.