Which of the Following Statements Regarding Liabilities Is True

question 19

Multiple Choice

Which of the following statements regarding liabilities is true?

• A)Liabilities must be legally enforceable to a known recipient.
• B)Liabilities arise from past activities that require some future sacrifice of economic benefits.
• C)The accounting principles followed in the U.S. require that current liabilities be listed in order of decreasing amounts on the balance sheet.
• D)The accounting principles followed in the U.S. differ substantially from those of other countries, especially with respect to current liabilities.

---

Definitions:

Beliefs

Convictions or acceptances that something exists or is true, especially without proof, shaping one's perception and behavior.

Adaptive Behaviors

The collection of conceptual, social, and practical skills that people learn and perform to function in their everyday lives.

Animal Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Natural Contexts

Environments or situations that occur organically without human intervention, where behaviors and events can be observed in their true form.