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:

Pancreas

An organ in the abdominal cavity that plays a crucial role in digestion and the regulation of blood sugar by producing enzymes and hormones like insulin and glucagon.

Esophagus

A muscular tube that connects the throat to the stomach, transporting swallowed food and liquids.

Throat

The anterior part of the neck, housing the pharynx and vocal cords, and leading to the esophagus and larynx.

Pharynx

The muscular tube that connects the mouth and nasal passages with the esophagus and larynx, serving both respiratory and digestive functions.