46.All the the following statements about liabilities room true except:   

A.A legal responsibility is a probable future payment of heritage or services.

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B.Unearned future salaries to be payment to employees need to be recorded as liabilities.

C.For a legal responsibility to it is in reported, it have to be a present obligation that outcomes from a previous transaction or event, and also requires a future payment of assets or services.

D.Information around liabilities is more useful as soon as the balance sheet identifies them as either current or long term.

E.Liabilities can involve suspicion in who to pay.

47.Obligations to be payment within one year or the company's operating cycle, whichever is longer, are:   

A.Current assets.

B.Current liabilities.

C.Earned revenues.

D.Operating bike liabilities.


48.Obligations not meant to be paid within the much longer of one year or the company's operating cycle room reported as:   

A.Current assets.

B.Current liabilities.

C.Long-term liabilities.

D.Operating bike liabilities.


49.All the the complying with statements about uncertainty in liabilities space true except:   

A.Liabilities can involve suspicion in whom to pay.

B.A agency can produce a liability v a well-known amount also when the holder the the note might not be well-known until the maturity date.

C.A firm can have actually an obligation of a well-known amount to a well-known creditor however not know when it must be paid.

D.A company only documents liabilities as soon as it knows whom to pay, when to pay, and also how much to pay.

E.A firm can be mindful of one obligation however not know just how much will be required to work out it.

50.In bespeak to be reported, liabilities must:   

A.Be certain.

B.Sometimes it is in estimated.

C.Be because that a specific amount.

D.Always have a definite day for payment.

E.Involve an outflow of cash.

51.All of the complying with are true of recognized liabilities except:   

A.Include account payable, notes payable, and payroll.

B.Are obligations collection by agreements, contracts, or laws.

C.Are measurable.

D.Are certainly determinable.

E.May depend on part future event occurring.

52.Accounts payable are:   

A.Amounts fan to service providers for products and/or services purchased top top credit.

B.Long-term liabilities.

C.Estimated liabilities.

D.Not generally due on particular dates.

E.Always payable in ~ 30 days.

53.Amounts received in advance from customers for future assets or services:   

A.Are revenues.

B.Increase income.

C.Are liabilities.

D.Are not allowed under GAAP.

E.Require one outlay that cash in the future.

54.When a company is obligated for sales counting payable, that is reported as a(n):   

A.Estimated liability.

B.Contingent liability.

C.Current liability.

D.Business expense.

E.Long-term liability.

55.Which that the complying with do not use to unearned revenues?   

A.Also referred to as deferred revenues.

B.Amounts obtained in development from customers for future distribution of products or services.

C.Also called collections in advance.

D.Also called prepayments.

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E.Amounts to be received later from client for delivery of products or services in the current period.