Which of the Following Statements Is True

question 30

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:

Complete Details

All the comprehensive and specific pieces of information that fully explain a concept, situation, or requirement.

Executive Summary

A concise overview of a larger document that highlights key points, conclusions, and recommendations, intended for quick reading by decision-makers.

Persuasive Call

A communication strategy designed to convince or influence someone to take a specific action.

Action

The process or state of acting or being active, usually implying movement, change, or doing something.