Submitted

$120/160$

Total poil

Which of the following statements is correct as it relates to the characteristics of a liability?

Multiple Choice

$$ A current liability is recorded at the point in time when an obligation exists that has the potential to require a transfer of assets upon settlement within $60-90$ days of the balance sheet date, or within the company's operating cycle, whichever is shorter

A current liability is recorded at the point in time when an obligation exists that has the potential to require a transfer of assets upon settlement within one year of the balance sheet date, or within the company's operating cycle, whichever is shorter

A liability is recorded at the point in time when an obligation exists that has the potential to require a transfer of assets upon settlement and will not impact the working capital ratio

A liability is recorded at the point in time when an obligation exists that has the potential to require a transfer of assets upon settlement and may impact the working capital ratio.

$$ All of these choices are correct.