Questions
MUF0021 Accounting Unit 1 - Semester 1, 2025 Quiz: The Balance Sheet
Single choice
A present obligation of the entity as a result of past events that is expected to be settled within 12 months is known as a
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
The question describes a present obligation that arises from past events and is expected to be settled within 12 months. This aligns with the definition of a current liability, which are obligations a company expects to settle in the short term, typically within the operating cycle or one yea......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
On a balance sheet, which of the following is classified as a short-term liability?
Referring to the Balance Sheet printed in Step 22 of the Practical Exam, what is the amount shown for Total current liabilities?
Here are some of the closing balances for a business. Calculate the current liabilities. Accounts payable 35,600 Accounts receivable 10,400 Bank loan 1,200,000 Cash 18,028 Cost of sales 340,000 Equipment 38,752 Inventory 100,800 Prepaid expenses 6,405 Property and land 1,500,550 Salary expense 115,900 Salary payable 9,526 Sales revenue 546,780 Unearned revenue 2,384
Part 1When is a liability classified as current? Part 1 A. If the entity's operating cycle is less than one month, then the liability will be classified as current if it is due and payable within three years. B. A liability is classified as current if the obligation is liquidated through the use of a current asset or the creation of another current liability. C. A liability that is due and payable within one year, or operating cycle if longer than one year, from the balance sheet date is classified as current. D. The liability must be due and payable within five years from the balance sheet date.
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!