All of the Following Statements Regarding Liabilities Are Except

question 3

Multiple Choice

All of the following statements regarding liabilities are 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:

Linear Model

A statistical model that assumes a linear relationship between the input variables and the single output variable.

Model

In science and engineering, a model is a simplified representation of a system or phenomenon, used to simulate and analyze its behavior.

Applicable

Capable of or suitable for being applied; relevant or appropriate in a given situation.

Leverage

The use of various financial instruments or borrowed money to increase the potential return of an investment.