Which of the following statements regarding liabilities is false? Multiple Choice A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. Potential future wages to be paid to employees should be recorded as liabilities. Long-term liabilities are obligations due after one year, or the company’s operating cycle if longer. Liabilities are classified as either current or long term. Liabilities can involve uncertainty in whom to pay.

A liability is a present obligation due to past transactions & events for making payment in…

Answered: Which of the following statements…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter6: Accounting Quality

Section: Chapter Questions

Problem 14QE

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Which of the following statements regarding liabilities is false?

Multiple Choice

A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.
Potential future wages to be paid to employees should be recorded as liabilities.
Long-term liabilities are obligations due after one year, or the company’s operating cycle if longer.
Liabilities are classified as either current or long term.
Liabilities can involve uncertainty in whom to pay.

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