Which of the following is false?
A) Under GAAP, a liability is only recognized if it is a present obligation.
B) Under GAAP, current liabilities are shown in order of magnitude.
C) Under GAAP, an item is a current liability if it will be paid within the next 12 months or the operating cycle, whichever is longer.
D) Under GAAP, current liabilities are presented before non-current liabilities.

Question

Quizplus · Accepted Answer

Under GAAP, current liabilities are not necessarily shown in order of magnitude. The order of presentation can vary based on the entity's accounting policies or the information that is useful to users of the financial statements.

Which of the Following Is False