All of the following statements regarding liabilities are true except:
A) Unearned future wages to be paid to employees should be recorded as liabilities.
B) For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services.
C) Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
D) Liabilities can involve uncertainty in whom to pay.
E) A liability is a probable future payment of assets or services.

Question

Quizplus · Accepted Answer

Unearned future wages are not recorded as liabilities because they do not represent a present obligation resulting from a past transaction or event.

All of the Following Statements Regarding Liabilities Are True Except