Which of the Following May Be Classified as a Current

question 67

Multiple Choice

Which of the following may be classified as a current liability?

• A) stock dividends distributable
• B) accounts receivable credit balances
• C) losses expected to be incurred within the next twelve months in excess of the company's insurance coverage
• D) tenant's rent deposit not returnable until the end of a long-term lease

---

Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and statement of cash flows.

Pro Forma Numbers

Financial data that projections or estimates are based on, often used to show potential financial performance.

FASB Pronouncements

Official statements and standards issued by the Financial Accounting Standards Board (FASB) that dictate accounting methods and financial reporting practices.