A Current Liability Is

question 11

Multiple Choice

A current liability is:

• A) expected to be paid within one year of the reporting date.
• B) expected to be paid within six months of the reporting date.
• C) expected to be paid beyond one year of the reporting date.
• D) arising from past events that will be confirmed by the occurrence of future events.

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Definitions:

Goodwill

An intangible asset reflecting the excess value of a business above its net tangible assets, often arising from acquisitions.

Consolidated Balance Sheet

A financial statement showing the combined assets, liabilities, and equity of a parent company and its subsidiaries.

Acquisition Method

An accounting technique used to consolidate the financial statements of a parent company and its subsidiaries.

Monetary Assets

Assets that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.