Which Statement Is Correct About Financial and Non-Financial Liabilities

question 73

Multiple Choice

Which statement is correct about financial and non-financial liabilities?

• A)A non-financial liability is a contractual obligation to deliver cash to another party.
• B)A non-financial liability does not meet all of the criteria for a "liability."
• C)The two liabilities are valued differently for financial reporting purposes.
• D)A non-financial liability is measured at fair value rather than amortized cost.

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Definitions:

Restraint

The practice of limiting the movements or actions of an individual, often for safety reasons or to prevent harm in a healthcare or custodial setting.

Nurse

A healthcare professional who is trained to care for the sick or infirm, especially in a hospital.

Time Interval

The duration or amount of time between two events or moments.

Electrical Shock

A sudden discharge of electricity through a part of the body, which can cause damage to tissues and possibly result in cardiac arrest or other serious health issues.