All of the following statements regarding liabilities are true except:
A) A liability is a probable future payment of assets or services.
B) Unearned future wages to be paid to employees should be recorded as liabilities.
C) For a liability to be reported, it must be a present obligation that results from a past
transaction or event, and requires a future payment of assets or services.
D) Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
E) Liabilities can involve uncertainty in whom to pay.
B) Unearned future wages to be paid to employees should be recorded as liabilities.
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Barton Building Company is ready to sell its bonds. Which one of the following financial questions is most relevant to the issue of the bonds and that investors will most likely want answered before they purchase the bonds?
a. How many product lines did Barton Building Company have last year? b. What will be Barton Building Company's cost to start operations in another city? c. How much debt does Barton Building Company already have? d. Will Barton Building Company pay dividends?
The two culture-building roles of a company's stated values and ethical standards are to
A. provide a basis for designing culture-supportive incentive compensation plans and reinforcing the appropriateness of particular ethical and moral actions. B. foster a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted and to provide them with guidance about how to do their jobs, steering them toward both doing things right and doing the right things. C. steer company personnel toward doing the right thing and convince outsiders that the company is socially responsible. D. communicate the company's good intentions and establish a corporate conscience. E. confirm the integrity of company personnel and signal the above-board nature of the company's business principles and operating methods.
A plant asset is fully depreciated when the book value is ________
A) greater than the residual value B) greater than the market value C) equal to the residual value D) equal to the market value
When using ABC, overhead costs assigned to each activity comprise an activity cost pool.
Answer the following statement true (T) or false (F)