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:

Learning

A process that results in a relatively permanent change in behavior or potential behavior that occurs as a result of experience or practice.

Growth Cycles

Periods of development characterized by rapid growth followed by more stable periods, applicable to both biological and economic systems.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that naturally triggers a response without the need for prior learning.