A Delivery Company Is Creating a Statement of Financial Position

question 3

Multiple Choice

A delivery company is creating a statement of financial position.Which of the following would most likely be considered a short-term liability on this statement of financial position?

• A)the depreciation over the last year in the value of the vehicles owned by the company
• B)revenue received for the delivery of items that have not yet been delivered
• C)a loan which must paid back in two years' time
• D)prepaid rent on the offices occupied by the company
• E)money owed to the firm by customers who have purchased goods on credit

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.