Which of the Following Is Characteristic of Current Liabilities

question 68

Multiple Choice

Which of the following is characteristic of current liabilities?

• A) Current liabilities are listed in order of decreasing amounts in the current liability section of a classified balance sheet.
• B) The amount of current liabilities has little implication for a company's liquidity.
• C) Current liabilities are the denominator in the formula for the current ratio.
• D) The current liabilities section of a classified balance sheet will never contain any portion of long-term liabilities.

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Definitions:

Organizational Socialization

The process by which a new employee learns the norms, values, behaviors, and social knowledge necessary to become an integrated member of an organization.

Task Demands

The specific requirements or challenges associated with a job or task, including the physical and mental effort required.

Culture

The shared beliefs, behaviors, and norms within an organization that shape its social and work environment.

Behavioral Norms

Established patterns of behavior that are considered acceptable or expected within a group or society.