Which of the following statement is incorrect? * a. Trade payable are classified as current liabilities when they are expected to be settled within the normal operating cycle or one year, whichever is shorter b. Non-trade payables are classified as current liabilities only when they are expected to be settled within one year c. Financial institutions need not classify their payables as trade or non-trade because their statement of financial position is presented based on liquidity d. A and B
Which of the following statement is incorrect? * a. Trade payable are classified as current liabilities when they are expected to be settled within the normal operating cycle or one year, whichever is shorter b. Non-trade payables are classified as current liabilities only when they are expected to be settled within one year c. Financial institutions need not classify their payables as trade or non-trade because their statement of financial position is presented based on liquidity d. A and B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statement is incorrect? *
a. Trade payable are classified as current liabilities when they are expected to be settled within the normal operating cycle or one year, whichever is shorter
b. Non-trade payables are classified as current liabilities only when they are expected to be settled within one year
c. Financial institutions need not classify their payables as trade or non-trade because their statement of financial position is presented based on liquidity
d. A and B
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