The Characteristic Shared by All Liabilities Is That They

question 115

Multiple Choice

The characteristic shared by all liabilities is that they:

• A)provide a future economic benefit.
• B)result in an inflow of resources to the company.
• C)always end in the word "payable."
• D)obligate the company to do something in the future.

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Definitions:

Supplies

Items that are used in the day-to-day operation of a business but do not directly relate to the goods or services sold.

Balance Sheet

A financial statement that provides a snapshot of what a company owns (assets), owes (liabilities), and the value of shareholders' equity at a specific point in time.

Financial Status

Financial status refers to the current financial condition of an individual or entity, characterized by factors like liquidity, solvency, and overall financial health.

Cash Flows

The overall volume of financial exchanges made into and from an organization, directly impacting its ability to cover short-term obligations.