Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following statements regarding liabilities is NOT true?

Long-term liabilities are due beyond one year from the balance sheet date.

Current liabilities are obligations expected to be settled within one year.

All liabilities must be paid in cash.

Notes payable and bonds payable are examples of liabilities.

Previous problemNext problem

Verified step by step guidance

Understand the definition of liabilities: Liabilities are obligations that a company owes to external parties, which can be settled through cash, goods, or services.

Review the classification of liabilities: Current liabilities are obligations expected to be settled within one year, while long-term liabilities are due beyond one year from the balance sheet date.

Analyze the statement 'All liabilities must be paid in cash': This is incorrect because liabilities can also be settled through other means, such as providing goods or services, not just cash.

Consider examples of liabilities: Notes payable and bonds payable are valid examples of liabilities, as they represent obligations to pay money in the future.

Determine the statement that is NOT true: Based on the analysis, the incorrect statement is 'All liabilities must be paid in cash,' as liabilities can be settled in various ways, not exclusively through cash.