All of the Following Statements Regarding Liabilities Are True Except

question 71

Multiple Choice

All of the following statements regarding liabilities are True except:

• A) A liability is a probable future payment of assets or services.
• B) Unearned future wages to be paid to employees should be recorded as liabilities.
• C) For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services.
• D) Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
• E) All of these are True.

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Definitions:

Criminal Laws

Laws that pertain to crimes and punishment, defining offenses against the state or public and setting penalties.

Bodily Damages

Physical injury or harm to a person's body, often a term used in legal contexts regarding compensation.

Breach Of Contract

Occurs when one party fails to fulfill their obligations under a contract, violating the agreement.

Private Law

Private law governs the relationships between private individuals or entities, dealing with issues such as contracts, property, and family relations, distinguishing it from public law which involves the state.