The Classification of a Liability as Current or Noncurrent Is

question 113

True/False

The classification of a liability as current or noncurrent is important because it may affect the evaluation of a company's liquidity.

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Definitions:

Creditor's Name

The name of the individual or entity that is owed money by a debtor for provided goods, services, or loans.

Voucher Number

A unique identifier assigned to a voucher, which is a document authorizing a payment or receipt in the accounting system.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Separation Of Duties

is a preventive security measure in organizations to reduce the risk of fraud or error, requiring more than one person to complete key tasks.