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:

Manifest Content

In psychoanalytic theory, the literal surface meaning or storyline of a dream, as remembered by the dreamer.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions such as fear, pleasure, and anger, as well as drives like those for food and sex.

Emotional Tone

The underlying mood or atmosphere conveyed or felt through communication or an environment, affecting emotional response.