Week 12 - Liabilities (1)

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.

• True

• False

Obligations not due within one year or the company's operating cycle, whichever is longer, are reported as current liabilities.

• True

• False

All expected future payments are liabilities.

• True

• False

A single liability can be divided between current and non-current liabilities.

• True

• False

Trade accounts payable are amounts owed to suppliers for products or services purchased on credit.

• True

• False

Deferred or Unearned revenues are liabilities.

• True

• False