Question: For a current liability to exist, the liability must be due usually within a year and must be paid out of current assets. True False

For a current liability to exist, the liability must be due usually within a year and must be paid out of current assets.

True False

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

For a current liability to exist the liability must be due usually within a year and must be aid out of current assets. True or false

Q:

Testbank Multiple Choice Question 46 Which of the following statements is false ? FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will...

Q:

Identify a company, business, or organization in your community (it can be one for which you work), and share some examples of current and long-term liabilities for that company. Reflect on the...

Q:

v Problem #1 (15 points) McDonald sold annual subscriptions to their magazine for $33,000 in December, 2015. The magazine is published monthly. The new subscribers received their first magazine in...

Q:

Question Completion Status: QUESTION 1 3 Which of the following statements regarding liabilities is false? A current liability is debt that is expected to be paid within a year or the operating...

Q:

Accounts Payable is classified as a current liability because payment of the invoice is usually due within one year or less. Group of answer choices True False

Q:

Question 1 & 2 please. Thank you QUESTION 1 Which of the following statements regarding liabilities is false? A warranty is an example of a contingent liability since the future obligation depends on...

Q:

QUESTION 11 11. Which of the following statements on the balance sheet is NOT true? a. Describes the financial state at a particular moment in time b. Current liability is a liability that needs to...

Q:

Which of the following statements regarding liabilities is false ? Liabilities require a transfer of assets in the future. Liabilities can be characterized as short-term or long-term. A lawsuit is an...

Q:

Which of the following statements regarding liabilities is false? A lawsuit is an example of a determinable liability since the future obligation depends on a future event. Liabilities require a...

Q:

1.16 A composite bar of 20 mm x 20 mm cross-section is made up of three flat bars as shown in Fig. 1.74. All the three bars are rigidly connected at the ends when the temperature is 20C. Determine...

Q:

For the year ending December 31, 2007, Chippendale Systems Inc. reported net income of $48,320 and paid dividends of $14,400. Comparative balance sheets as of December 31, 2007 and 2006 are as...

Q:

What is terminal value? Group of answer choices The value of a company today. The discounted value of a company. The value of a company at the end of some future time period. A company's P/E ratio

Q:

If the following join statement is used to join two tables in a query, which of the following tables would all of the tuples in the relation appear in results? left join university.students on...