Which Statement Is Not Correct

question 10

Multiple Choice

Which statement is not correct?

• A)A bank loan due in 5 years is a non-financial liability.
• B)Bonds payable are financial liabilities.
• C)Sales taxes payable are non-financial liabilities.
• D)A bank loan due in 90 days is a financial liability.

Learn the accounting treatments for acquisitions not made at the beginning of a fiscal year.

Acquire knowledge on the accounting for mid-year acquisitions following an equity method investment.

Understand the financial reporting implications of step acquisitions and remeasurement to fair value.

Understand the different methods of internal record-keeping for investments in subsidiaries (equity, partial equity, initial value).

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Definitions:

Price Changes

Variations in the cost of goods and services over time, affecting consumer behavior and economic trends.

Hyperinflation

An extremely high and typically accelerating inflation rate, often resulting in the quick erosion of the real value of the local currency.

Inflation

The tempo at which prices for general goods and services ascend, leading to a depreciation in money's buying strength.

Government

The organization or system through which a society or community is ruled, often responsible for creating and enforcing laws, policies, and regulations.