Which of the Following Statements Is False

question 163

Multiple Choice

Which of the following statements is false?

• A) A company may exclude a short-term obligation from current liabilities if the firm intends to refinance the obligation on a long-term basis and demonstrates an ability to complete the refinancing.
• B) Cash dividends should be recorded as a liability when they are declared by the board of directors.
• C) Under the cash basis method, warranty costs are charged to expense as they are paid.
• D) FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority.

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Definitions:

Inherited Traits

Characteristics or attributes that are passed from parents to their offspring through genes.

Personality

The blend of traits or attributes that create a person's unique personality.

Power Distance

A cultural dimension that describes how members of a society accept and expect the distribution of power to be inequitable.

Cultural Personality

The collective pattern of thinking, feeling, and acting that characterizes a group and influences members' behavior.