Current Liabilities Are Normally Recorded at the Amount Expected to Be

question 3

Multiple Choice

Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of:

• A) Matching.
• B) Consistency.
• C) Materiality.
• D) Conservatism.

---

Definitions:

Skewness

Skewness is a measure of the asymmetry of the probability distribution of a real-valued random variable about its mean, indicating whether the data distribution leans to the left or the right.

Data Skewed

Describes data that is not symmetrically distributed, typically shifted towards either the left or right, affecting the dataset's mean, median, and mode.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.