All of the following statements regarding liabilities are except:
A) A liability is a probable future payment of assets or services.
B) Unearned future wages to be paid to employees should be recorded as liabilities.
C) 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.
D) Information about liabilities is more useful when the balance sheet identifies them as either current or long term.
E) All of these are True.

Question

Quizplus · Accepted Answer

Unearned future wages to be paid to employees are not recorded as liabilities because they represent future obligations that have not yet been incurred. Liabilities are recognized for obligations that are present as a result of past transactions or events. Unearned wages are future expenses that will be recognized as liabilities when the work is performed and the obligation arises.

All of the Following Statements Regarding Liabilities Are Except