Which of the Following Statements Is Not True About Liabilities

question 39

Multiple Choice

Which of the following statements is not true about liabilities?

• A) Liabilities are debts owed to outsiders.
• B) Account titles of liabilities often include the term "payable."
• C) Cash received before services are performed is considered to be a liability.
• D) Liabilities include insurance premium paid in advance.

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Definitions:

Consumer Behavior

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences.

Product Reliability

The probability that a product will function without failure over a specified period under stated conditions.

Framing

Tendency to rely on the context in which a choice is described when making a decision.

Salience

The perceived importance of a good or service.