Statement 1: Liabilities are present obligations that represent both legal and constructive obligations. Statement 2: All trade payables regardless of the expected timing of settlement are always classified as current. a.True, True b.False, false c.False, True d.True, False

Statement 1: Liabilities are present obligations that represent both legal and constructive obligations. Statement 2: All trade payables regardless of the expected timing of settlement are always classified as current. a.True, True b.False, false c.False, True d.True, False

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 11Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Statement 1: Liabilities are present obligations that represent both legal and constructive obligations.

Statement 2: All trade payables regardless of the expected timing of settlement are always classified as current.

a.True, True

b.False, false

c.False, True

d.True, False

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