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:

Purchase

The act of buying goods, services, or assets in exchange for money or its equivalent.

Annual Interest

The total amount of interest to be paid or earned over the course of a year, typically associated with loans or investments.

Eiger Company Bonds

A type of debt security issued by the Eiger Company to raise capital, where the investor is paid interest and the principal is repaid at a future date.

Purchase

The act of obtaining goods or services, often in exchange for money, as part of business operations or personal consumption.