Liabilities Are Generally Classified on a Balance Sheet as

question 87

Multiple Choice

Liabilities are generally classified on a balance sheet as

• A) small liabilities and large liabilities.
• B) present liabilities and future liabilities.
• C) tangible liabilities and intangible liabilities.
• D) current liabilities and non-current liabilities.

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Definitions:

Operating Activity

Activities that constitute the primary or core business functions, including sales and service provision, and their related expenses, generating most of the company's cash flows.

Cash Flows

Cash flows refer to the movement of money into and out of a business, indicative of its liquidity, operational efficiency, and financial health.

Cash Receipts

Cash receipts refer to the collection of money, including checks, cash, and credit card charges, received by a business for goods or services it has sold.

Cash Payments

Money that is paid out by a business, often for expenses, debt, or purchases.