Which of the Following May Be Classified as a Current

question 8

Multiple Choice

Which of the following may be classified as a current liability?

• A)stock dividends distributable
• B)accounts receivable credit balances
• C)losses expected to be incurred within the next twelve months in excess of the company's
• Insurance coverage
• D)tenant's rent deposit not returnable until the end of a long-term lease

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Definitions:

Direct Pay

The monetary compensation received by employees for their work, including wages, salaries, bonuses, and commissions.

Competitive Pressure

The influence and constraints exerted by competition within a market, which force companies to continuously improve.

Indirect Pay

Employee compensation that includes non-monetary benefits such as health insurance, retirement plans, and paid time off, rather than direct cash payments.

Hour Worked

A measurement of labor contributing to the production of goods and services, calculated as the amount of time an employee spends on work activities.