Which Statement Is Correct About Financial and Non-Financial Liabilities

question 19

Multiple Choice

Which statement is correct about financial and non-financial liabilities?

• A)A non-financial liability is a contractual obligation to deliver cash to another party.
• B)A non-financial liability does not meet all of the criteria for a "liability."
• C)The two liabilities may be valued differently for financial reporting purposes.
• D)A non-financial liability is measured at fair value rather than amortized cost.

---

Definitions:

High School Education

A secondary level of formal schooling that follows primary education, typically including grades 9 or 10 through 12, and culminating in a diploma.

Proportion

A statistical measure that reflects the fraction or percentage of the total number of cases that fall within a particular category.

Statistic

A characteristic or measure obtained from a sample of data to estimate a population parameter.

Sampling Distribution

The likelihood distribution of a statistic, achieved by drawing numerous samples from a certain population.