In a Classified Statement of fiNancial Position Which of the Following

question 139

Multiple Choice

In a classified statement of financial position which of the following is NOT true

• A) The asset and liability sections are divided into short-term and long-term sections.
• B) The long-term assets and liabilities are presented before the short- term assets and liabilities.
• C) Shareholders' equity is made up of retained earnings and share capital.
• D) The current assets are listed in order of liquidity.

---

Definitions:

Breach of Warranty

A violation of the promises or guarantees made about the quality, condition, or performance of a product or service.

Seek Cover

The act of attempting to find a substitute transaction or solution, typically in the context of a failed contract or transaction.

Breach of Contract

The violation of any of the agreed-upon terms and conditions in a binding contract.

Punitive Damages

Financial compensation awarded to a plaintiff, beyond actual damages, to punish the defendant for egregious conduct.