Which of the following statements is true of liabilities?
A) Classification of current liabilities is important because of the liquidity concept.
B) The accounting principles followed in the U.S. differ from those of other countries; this is especially true for current liabilities.
C) Current liabilities are listed in order of decreasing amounts in the current liability section of the balance sheet.
D) Accounts payable are listed in the current liabilities section in alphabetical order by vendor.

Question

Quizplus · Accepted Answer

Classification of current liabilities is important because it helps assess a company's liquidity, indicating its ability to meet short-term obligations.

Which of the Following Statements Is True of Liabilities