Normalization Works Through a Series of Stages Called Normal Forms

question 50

True/False

Normalization works through a series of stages called normal forms.

---

Definitions:

Current Liabilities

Current liabilities are financial obligations a company needs to pay within one year, including accounts payable, short-term loans, and other similar debts.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the ownership's claim on the assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.

Long-Term Liabilities

Obligations or debts a company is responsible for paying beyond one year from the date of the balance sheet.