Which of the Following Statements Concerning Current Liabilities Is Incorrect

question 73

Multiple Choice

Which of the following statements concerning current liabilities is incorrect?

• A) Current liabilities include unearned revenues.
• B) A company that has more current liabilities than current assets is usually the subject of some concern.
• C) Current liabilities include prepaid expenses.
• D) A current liability is a debt that can reasonably be expected to be paid out of existing current assets or result in the creation of other current liabilities.

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Definitions:

Osmosis

The spontaneous movement of solvent molecules through a semi-permeable membrane from a region of lower solute concentration to a region of higher solute concentration.

Salt Water

Water that contains a high concentration of dissolved salts, commonly found in the oceans.

Iodine Potassium Iodide (IKI)

A chemical solution commonly used as a starch indicator in biological and chemical experiments. It changes color in the presence of starch.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.