Which of the Following Statements Is False

question 20

Multiple Choice

Which of the following statements is false?

• A)A company may exclude a short-term obligation from current liabilities if it intends to refinance the obligation on a long-term basis and have an unconditional right to defer settlement of the liability for at least 12 months.
• B)Cash dividends should be recorded as a liability when they are declared by the board of directors.
• C)Under the cash basis method, warranty costs are charged to expense as they are paid.
• D)Social security taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority.

Describe the conditions for a firm to operate, shut down, or leave the industry in the short run and long run

Explain the significance of the break-even and shutdown points for a firm's operation

Understand the concept of efficiency in the context of production and marginal analysis

Identify the relationship and differences between short-run and long-run decision-making for firms

---

Definitions:

Home-Country National

A term referring to employees who are working in their country of origin.

Hammer

A tool with a heavy head and a handle, used for breaking things or driving in nails.

Home-Country Nationals

Employees who are citizens of the country where their company is headquartered, even if they work abroad.

Technical Knowledge

The specific expertise and skills related to the practical aspects of operations, processes, and technology within a specific field or industry.