All of the following statements regarding liabilities are true except:
A. Liabilities can involve uncertainty in whom to pay.
B. Potential 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. A liability is a probable future payment of assets or services.
E. Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
Answer: B
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