All of the Following Statements Regarding Uncertainty in Liabilities Are

question 114

Multiple Choice

All of the following statements regarding uncertainty in liabilities are true except:

• A)Liabilities can involve uncertainty in whom to pay.
• B)A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date.
• C)A company can have an obligation of a known amount to a known creditor but not know when it must be paid.
• D)A company only records liabilities when it knows whom to pay,when to pay,and how much to pay.
• E)A company can be aware of an obligation but not know how much will be required to settle it.

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Definitions:

Client-Visits

The number of times clients or customers physically or virtually engage with a business, often used to measure engagement or service levels.

Wages and Salaries

Monetary compensation paid to employees for their labor, with wages typically referring to hourly pay and salaries to annual earnings.

Planning Budget

An initial budget prepared based on estimates of what revenues and costs should be before a period begins, often used for setting goals and objectives.

Net Operating Income

The income earned by a company from its main business activities before subtracting interest and tax expenses.