Asked by
Haris Ali Khan
on Oct 28, 2024Verified
Which of the following would not be an acceptable method of presenting current liabilities on the balance sheet?
A) alphabetically
B) in order of their average time to maturity
C) in order of their liquidation preference
D) in order of their amount (largest to smallest)
Liquidation Preference
A term used in financial structuring, determining the order in which shareholders are paid in the event of a company’s liquidation.
Alphabetically
In the order of the letters as they appear in the alphabet, typically used for organizing or sorting lists.
- Understand the criteria for classifying liabilities as current or long-term.
Verified Answer
KR
Learning Objectives
- Understand the criteria for classifying liabilities as current or long-term.
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