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:

In Rem Jurisdiction

Jurisdiction over a particular piece of property, regardless of where the property owner resides.

Personam Jurisdiction

The legal authority for a court to make decisions affecting a particular person's rights or obligations.

Sui Iuris

A Latin term meaning "of one's own right," referring to individuals who possess full legal capacity to act on their own behalf.

Subject-Matter Jurisdiction

The authority of a court to hear cases of a particular type or cases relating to a specific subject matter.