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:

Racial Bias

The positive or negative prejudices or stereotypes towards individuals or groups based on their race, often unconsciously held.

Cultural Incapacity

A lack of capacity, knowledge, or skills to effectively interact with and respect culturally diverse individuals or groups.

Cultural Destructiveness

Cultural destructiveness involves attitudes, policies, and practices that are harmful to cultures and consequently to the individuals within the culture.

Cultural Pre-competence

A stage in becoming culturally competent where individuals or organizations recognize and accept differences in culture but may lack the knowledge or skills to effectively engage with those differences.