Financial Reporting And Analysis - Financial Reporting And Analysis Section 1
56. Which of the following is least likely a criterion for classification of a liability as current?
- Option : C
- Explanation : The criterion for classifying a liability as current is that the entity does not have an unconditional right to defer settlement of the liability for at least one year after the balance sheet date.
57. The excess of current assets over current liabilities is called:
- Option : C
- Explanation : The excess of current assets over current liabilities is called working capital.
59. Which of the following is a contra asset account?
- Option : B
- Explanation : Allowance for doubtful accounts is a contra asset account because it is netted against the balance of trade receivables.
60. Which of the following is least likely a current liability?
