Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A)Current liabilities are generally presented on the statement of financial position in order of liquidity, but IFRS allows presentation in reverse order of liquidity as well.
• B)Current liabilities are listed in order of descending dollar value.
• C)All companies are prohibited to report current liabilities in reverse order of liquidity.
• D)Current liabilities are listed in order of ascending dollar value.

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Definitions:

MR = MC

A condition in economics where marginal revenue equals marginal cost, often used to determine the optimal level of output in perfectly competitive markets.

ATC

Average Total Cost, which is the total cost divided by the quantity of output produced. It represents the per-unit production cost at various levels of output.

Earning A Profit

The financial gain realized when the total revenues generated from a business activity exceed the total costs associated with that activity.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.