Which of the Following Statements Is FALSE

question 58

Multiple Choice

Which of the following statements is FALSE?

• A) Under IFRS, a company may exclude a short-term obligation from current liabilities if, at statement of financial position date, the entity expects to refinance under an existing agreement for at least a year, and the decision is solely at its discretion.
• 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) Federal income taxes withheld from employees' payroll cheques should be recorded as a long-term liability.

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Definitions:

Allocate Money Income

The process of distributing financial resources among different uses to satisfy various needs and desires.

Elasticity

A measure in economics that shows how the quantity demanded or supplied of a good changes in response to price or other economic factors.

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer gains from consuming one more unit of a good or service.

Consumer Behavior

Consumer behavior examines the decision-making processes and actions of individuals or groups in purchasing and using goods and services.