Which of the Following Statements Concerning Current Liabilities Is Incorrect

question 159

Multiple Choice

Which of the following statements concerning current liabilities is incorrect?

• A)Current liabilities include unearned revenues.
• B)A company that has more current liabilities than current assets is usually the subject of some concern.
• C)Current liabilities include prepaid expenses.
• D)A current liability is a debt that can reasonably be expected to be paid out of existing current assets or result in the creation of other current liabilities.

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Definitions:

Managerial Authority

The power vested in managers to make decisions and direct subordinates within an organization.

Charismatic Personality

A set of personal attributes that enable an individual to exert significant influence or charm over others, often leading to strong leadership or followership.

High-Ranking Title

A designation or position of high status within an organization that signifies authority, responsibility, or professional achievement.

Empowerment

The process of giving individuals or groups more control, responsibility, and authority over their work or lives, leading to increased motivation and self-esteem.