Scribd Logo
Upload

Welcome to Scribd!

  • Current Liabilities (Theories) 2

    Uploaded by

    John Paul Salazar
    88 views1 page
    The document discusses characteristics of liabilities and how they are measured. It asks multiple choice questions about which answer does not meet the definition of a liability, the relationship between present value and measuring liabilities, and a characteristic of a current liability but not a non-current liability. The correct answers are d, a, and c, respectively.

    Original Description:

    Original Title

    Current liabilities (theories) 2

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses characteristics of liabilities and how they are measured. It asks multiple choice questions about which answer does not meet the definition of a liability, the relationship between present value and measuring liabilities, and a characteristic of a current liability but not a non-current liability. The correct answers are d, a, and c, respectively.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    88 views1 page

    Current Liabilities (Theories) 2

    Uploaded by

    John Paul Salazar
    The document discusses characteristics of liabilities and how they are measured. It asks multiple choice questions about which answer does not meet the definition of a liability, the relationship between present value and measuring liabilities, and a characteristic of a current liability but not a non-current liability. The correct answers are d, a, and c, respectively.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Which does not meet the definition of a liability?

    a. An obligation that is estimated in amount


    b. An obligation to provide goods or services in the future
    c. The signing of a three-year employment contract at fixed annual salary
    d. A note payable with no specified maturity date
    What is the relationship between present value and the concept of a liability?
    a. Present value is not used to measure liabilities
    b. Present value is used to measure non-current liabilities only.
    c. Present value is used to measure all liabilities
    d. Present value is used to measure certain liabilities
    Which is a characteristic of a current liability but not a non-current liability?
    a. The obligating event creating the liability has already occurred
    b. Unavoidable obligation
    c. Settlement is expected within the normal operating cycle of within 12 months, whichever
    is longer
    d. Present obligation that entails settlement by probable future transfer of cash, goods or
    services

    You might also like