Which of the Following Statements Is True of Liabilities

question 28

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 liability section of the balance sheet.
• D) The accounting principles followed in the U.S.differ from those of other countries; this is especially true for current liabilities.

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Definitions:

Maintenance Stage

A phase in the development of individuals, groups, or systems where the focus is on sustaining achievements and preventing regression.

Sustaining Performance

Maintaining a consistent level of effort and output over an extended period.

Facilitating Exposure

The act of making something more accessible or providing the means for its discovery or understanding.

Sponsorship

The support, often financial, provided by an individual or organization to an event, activity, person, or organization, usually for promotional benefits.