Liabilities Reflected on the Balance Sheet Are Divided into Two

question 115

True/False

Liabilities reflected on the balance sheet are divided into two general categories: current (debts to be paid within one year) and long term (due more than a year into the future).

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Definitions:

UCC Section 2-302(a)(1)

A provision under the Uniform Commercial Code allowing a court to refuse to enforce a contract or clause within it that it finds unconscionable.

Holder in Due Course

A term in commercial law referring to an individual who has obtained a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be used against the original issuer.

Forged

The act of illegally copying or creating documents, signatures, artwork, or other items with the intent to deceive or defraud.

Foreign Corporation

A corporation incorporated in one state doing business in another state. See also alien corporation.