Current Liabilities

question 4

Multiple Choice

Current liabilities

• A) are obligations that the company is to pay within the forthcoming year.
• B) are listed in the balance sheet in order of their expected maturity.
• C) are listed in the balance sheet starting with accounts payable.
• D) should not include long-term debt that is expected to be paid within the next year.

Understand the balance of trade and the concept of trade deficits.

Recognize leading exports and imports of the United States and other countries, and the importance of service exports.

Understand the principles of absolute and comparative advantage as proposed by Adam Smith and David Ricardo.

Recognize the benefits of specialization and trading based on comparative advantage.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Balance Date

The specific date at which the financial position of a company is measured and reported, often the end of the fiscal year.

AASB 137

A standard issued by the Australian Accounting Standards Board that deals with the accounting for provisions, contingent liabilities, and contingent assets.

Share Buy-backs

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.