Which of the following is a not a correct statement about financial statements?
A Current assets refer to mostly liquid assets (financial capital) and inventory.
B Non-current assets refer to mostly fixed assets (physical capital) such as plant, equipment, and properties including land & building.
C Current liabilities refer to long-term payment obligations such as accounts payable and notes payable.
D Non-current liabilities refer to long-term debt such as bonds and mortgage.
E Liquid assets include cash, cash-equivalents, stocks and bonds, and accounts
receivable.
Solution
Answer
Out of above statments, The incorrect statement about financial statements is :
C Current liabilities refer to long-term payment obligations such as accounts payable and notes payable.
Note : The correct statment is :
Current liabilities refer to short-term payment obligations such as accounts payable and notes payable.
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Which of the following is a not a correct statement about financial st.docx
1. Which of the following is a not a correct statement about financial statements?
A Current assets refer to mostly liquid assets (financial capital) and inventory.
B Non-current assets refer to mostly fixed assets (physical capital) such as plant, equipment, and
properties including land & building.
C Current liabilities refer to long-term payment obligations such as accounts payable and notes
payable.
D Non-current liabilities refer to long-term debt such as bonds and mortgage.
E Liquid assets include cash, cash-equivalents, stocks and bonds, and accounts
receivable.
Solution
Answer
Out of above statments, The incorrect statement about financial statements is :
C Current liabilities refer to long-term payment obligations such as accounts payable and notes
payable.
Note : The correct statment is :
Current liabilities refer to short-term payment obligations such as accounts payable and notes
payable.
