[Solved] The Supreme Court in New York v.Ferber held that states are granted more leeway in the regulation of pornographic depictions of children than in the regulation of obscenity because the use of children as subjects of pornographic materials is harmful to the physiological, emotional, and mental health of the child. Current Liabilities: Financial obligations a company is required to pay within one year or within the normal operating cycle. Current Ratio: A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets. Income Statement: A financial statement that shows a company's revenues, expenses, and net income over a specific period of time, indicating its profitability. Debits: Entries on the left side of a double-entry accounting system that increase assets or expenses or decrease liabilities, equity, and income.