Which of the Following Statements Is True of Liabilities

question 69

Multiple Choice

Which of the following statements is true of liabilities?

• A) Classification of current liabilities is important because of the liquidity concept.
• B) The accounting principles followed in the U.S. differ from those of other countries; this is especially true for current liabilities.
• C) Current liabilities are listed in order of decreasing amounts in the current liability section of the balance sheet.
• D) Accounts payable are listed in the current liabilities section in alphabetical order by vendor.

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Definitions:

Shrimp Market

A sector of the economy related to the buying, selling, and distribution of shrimp, both wild-caught and farmed.

Total Tax Revenue

The total amount of money collected by a government from taxes.

Glass Ceiling

An invisible barrier that prevents women and minorities from advancing to the highest levels of the corporate ladder, regardless of qualifications or achievements.

Discrimination

The unfair treatment of individuals based on their race, age, sex, nationality, or other characteristics.