All of the Following Statements Regarding Liabilities Are True Except

question 72

Multiple Choice

All of the following statements regarding liabilities are true except:

• A) Unearned future wages to be paid to employees should be recorded as liabilities.
• B) For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services.
• C) Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
• D) Liabilities can involve uncertainty in whom to pay.
• E) A liability is a probable future payment of assets or services.

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