True or False 1. A cash dividend declared before the balance sheet date when the date of record is subsequent to the balance sheet date should be classified as a noncurrent liability 2. The principal accounting for a compound financial instrument is to classify a compound instrument as a liability in its entirety, until converted into equity, unless the equity component is detachable and separately transferable, in which case the liability and equity components shall be presented separately. 3. Deferred tax liabilities are always presented as noncurrent when an entity presents a classified statement of financial position.
True or False 1. A cash dividend declared before the balance sheet date when the date of record is subsequent to the balance sheet date should be classified as a noncurrent liability 2. The principal accounting for a compound financial instrument is to classify a compound instrument as a liability in its entirety, until converted into equity, unless the equity component is detachable and separately transferable, in which case the liability and equity components shall be presented separately. 3. Deferred tax liabilities are always presented as noncurrent when an entity presents a classified statement of financial position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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True or False
1. A cash dividend declared before the balance sheet date when the date of record is subsequent to the balance sheet date should be classified as a noncurrent liability
2. The principal accounting for a compound financial instrument is to classify a compound instrument as a liability in its entirety, until converted into equity, unless the equity component is detachable and separately transferable, in which case the liability and equity components shall be presented separately.
3.
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