Which of the following is a true statement?
A)There is more variety in liability groups than in asset groups.
B)Most liabilities are non-contractual in nature.
C)There are natural subclassifications of liabilities and assets that can be inferred from the balance sheet.
D)Liabilities are measured at amounts established in the transaction, usually amounts to be paid in the future, sometimes discounted.

Question

Quizplus · Accepted Answer

Liabilities are measured at their current value, which is usually the amount to be paid in the future. Sometimes, these amounts may be discounted. There is no evidence to suggest that there is more variety in liability groups than in asset groups, or that most liabilities are non-contractual. While there are natural subclassifications of liabilities and assets on the balance sheet, this is not relevant to the question.

Which of the Following Is a True Statement