Liabilities Are Classified as Current If They

question 228

Multiple Choice

Liabilities are classified as current if they:

• A)will be paid within the company's operating cycle or within 1 year,whichever is longer.
• B)will be paid using current assets.
• C)are less than the current assets.
• D)are greater than the current assets.

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Definitions:

Internal Control

A system of policies and procedures implemented by a company to ensure the integrity of financial and accounting information, enhance operational efficiency, and promote adherence to applicable laws and regulations.

Bank Account

An account held by an individual or business with a financial institution, allowing for the deposit and withdrawal of funds.

Physical Custody

The actual possession or direct control of tangible assets, documents, or securities.

Asset Records

Documentation that details the acquisition, valuation, and disposal of assets owned by an individual or organization.