All of the Following Statements About Current Liabilities Are True

question 92

Multiple Choice

All of the following statements about current liabilities are true except:

• A) Current liabilities are obligations which will be satisfied within one year.
• B) Current liabilities are normally recorded at face value .
• C) The current liability section never contains any portion of long-term liabilities.
• D) Current liabilities finance the working capital of the company.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.

Trade

Trade involves the exchange of goods and services between people or entities, either within a country or internationally, and is a fundamental aspect of the global economy.

Skateboards

Wheeled boards used for skateboarding, a recreational activity, sport, or mode of transportation.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount received from its sale.