Which is not a characteristic of a liability?
A) There will be a probable future transfer or use of assets.
B) There is little or no discretion to avoid the future sacrifice.
C) The obligating transaction or event must have already happened.
D) A legally enforceable claim must be present.
D
You might also like to view...
The distinction between recognition and realization is essential to accrual accounting, hence the importance accorded to recognition criteria. Firms recognize items that qualify for inclusion in the financial statements when they enter the financial statements. In the case of value decreases, the firm
a. recognizes the decreases as impairment expenses when it realizes the collection of the reduced cash flows. b. recognizes the decreases as cost of goods sold when the decreases occur before it realizes the collection of the reduced cash flows. c. recognizes the decreases as impairment expenses when the decreases occur before it realizes the collection of the reduced cash flows. d. recognizes the decreases as cost of goods sold when it realizes the collection of the reduced cash flows. e. None of these answer choices is correct.
An example of a customer-value-added activity is:
A. final painting and polishing of the product. B. installation of a computerized human resource management module. C. addition of an employee hotline for workplace complaints. D. shortening the customers' billing cycle. E. maintenance of an adequate safety stock.
One method of taking a publicly held corporation private, by forcing minority shareholders to accept cash or property for their shares, is a(n):
A) appraisal remedy. B) cash-out combination. C) management buyout. D) tender offer.
Lease financing is an example of a business financing need not served by most banks
Indicate whether the statement is true or false