Current Liabilities Must Be Paid Either in Cash or with Goods

question 97

True/False

Current liabilities must be paid either in cash or with goods and services within one year or within the entity's operating cycle,if the cycle is longer than a year.

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Definitions:

Chemical Energy

A form of potential energy stored in the bonds of chemical compounds, released or absorbed during chemical reactions.

Inorganic Compounds

Chemical compounds that generally do not contain carbon-hydrogen bonds, including salts, metals, and minerals.

Organic Compounds

Chemical substances that contain carbon bonded to hydrogen, with a vast range of biological, industrial, and environmental applications.

Kinetic Energy

The energy that an object possesses due to its motion, calculated as one-half the mass of the object multiplied by the square of its velocity.