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.

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Definitions:

Working Women

Refers to women who engage in paid employment outside their homes.

Labor Force

The total number of people employed or available for employment in an economy.

Stay-at-Home Moms

Mothers who choose to not work outside the home in order to focus on childcare and managing their household.

Two-Income Parents

Households in which both parents are employed and contribute to the family's income, often for financial stability or to achieve a higher standard of living.