Which of the Following Is Not an Acceptable Treatment for the Presentation

question 47

Multiple Choice

Which of the following is not an acceptable treatment for the presentation of current liabilities?

• A) Listing current liabilities in order of maturity
• B) Listing current liabilities according to amount
• C) Offsetting current liabilities against assets that are to be applied to their liquidation
• D) Showing current liabilities immediately below current assets to obtain a presentation of working capital

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Definitions:

Sole Proprietorships

A simple business structure where a single individual owns and operates the business.

Action Against Directors

Legal proceedings initiated to hold directors of a company responsible for their actions or omissions that harm the company or its stakeholders.

Preferred Shares

A type of stock that offers dividends at fixed rates before any dividends can be issued to common shareholders and typically does not carry voting rights.

Voting Shares

Company shares that grant the shareholder the right to vote on corporate matters.