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:

Polygraphs

Devices used in an attempt to detect lies, measuring physiological responses believed to be indicators of truthfulness or deception.

Perspiration

The process of sweating, where the body excretes water and salts through the skin primarily to regulate body temperature.

Heart Rate

The number of times a person's heart beats per minute, indicating cardiovascular health and fitness levels.

Invasion Privacy

Unauthorized and unwelcome intrusion into someone's personal life, violating their right to privacy.