If Liabilities Are Disclosed as Current on the Basis of the Entity's

question 46

Multiple Choice

If liabilities are disclosed as current on the basis of the entity's operating cycle,and this cycle is greater than 12 months it should:

• A) adjust the statement of financial position for a 12 month period.
• B) disclose the length of the operating cycle.
• C) apply the 12-month test.
• D) None of the given answers are correct.