Podcast
Questions and Answers
What is the primary characteristic of a liability?
What is the primary characteristic of a liability?
- It is a type of equity that is issued to investors.
- It is a type of revenue that is earned through business operations.
- It presents an obligation that will be settled through an outflow of resources embodying economic benefits. (correct)
- It represents an asset that will increase in value over time.
Where are liabilities typically recognized on a company's financial statements?
Where are liabilities typically recognized on a company's financial statements?
- Cash Flow Statement
- Statement of Changes in Equity
- Income Statement
- Balance Sheet (correct)
What is the primary difference between short-term and long-term liabilities?
What is the primary difference between short-term and long-term liabilities?
- The type of resource required to settle the liability
- The amount of the liability
- The timing of the liability settlement (correct)
- The interest rate associated with the liability
What is the primary purpose of a note payable?
What is the primary purpose of a note payable?
What is the purpose of the accounts payable turnover ratio?
What is the purpose of the accounts payable turnover ratio?
What is the effective tax rate of a company with a profit before tax of $4,591 million and a tax expense of $609 million?
What is the effective tax rate of a company with a profit before tax of $4,591 million and a tax expense of $609 million?
What is the primary characteristic of an accrued liability?
What is the primary characteristic of an accrued liability?
What is the distinction between a provision and a liability?
What is the distinction between a provision and a liability?
What is the primary difference between deposits and unearned revenue?
What is the primary difference between deposits and unearned revenue?
Which of the following is NOT a form of employee compensation?
Which of the following is NOT a form of employee compensation?
What is the purpose of the payment schedule for corporate tax?
What is the purpose of the payment schedule for corporate tax?
What is the accounting treatment for the current portion of long-term debt?
What is the accounting treatment for the current portion of long-term debt?
