Which of the Following Statements Is True of Liabilities

question 123

Multiple Choice

Which of the following statements is true of liabilities?

• A)Accounts payable are listed in the Current Liabilities section in alphabetical order by vendor.
• B)Classification of current liabilities is important because of the liquidity concept.
• C)Current liabilities are listed in order of decreasing amounts in the Current Liabilities section of the balance sheet.
• D)U.S.accounting principles differ from those of other countries;this is especially true for current liabilities.

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Definitions:

Sums of Squares

A statistical technique used to describe the total variation or dispersion of a set of data points around their mean.

ANOVA Table

A table that summarizes the output and relevant statistical tests of an analysis of variance, which compares means among groups.

Variation

The degree of dispersion or spread in a set of values, indicating how much individual data points differ from the mean.

ANOVA Methods

Statistical techniques used to compare the means of three or more samples, investigating whether at least one sample mean differs from the others.