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:

Power Moves

Strategic actions taken to assert dominance or influence over others in a negotiation or social interaction.

Ultimatum

A final demand or statement of terms, the rejection of which will result in retaliation or a breakdown in relations.

Recalcitrant

Stubbornly resistant to authority or control; uncooperative.

Compliance

The act of conforming to or following rules, standards, or commands.