All of the following statements regarding uncertainty in liabilities are true except: A. Liabilities can involve uncertainty in whom to pay. B. A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date. C. A company can have an obligation of a known amount to a known creditor but not know when it must be paid. D. A company only records liabilities when it knows whom to pay, when to pay, and how much to pay. E. A company can be aware of an obligation but not know how much will be required to settle it.

Question

Goober

Business

7 May, 12:54

All of the following statements regarding uncertainty in liabilities are true except: A. Liabilities can involve uncertainty in whom to pay. B. A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date. C. A company can have an obligation of a known amount to a known creditor but not know when it must be paid. D. A company only records liabilities when it knows whom to pay, when to pay, and how much to pay. E. A company can be aware of an obligation but not know how much will be required to settle it.

+1

Answers (1)

Know the Answer?

Araceli Lozano · Answer 1

Answer: All of the following statements regarding uncertainty in liabilities are true except: A company only records liabilities when it knows whom to pay, when to pay, and how much to pay.

The statement is not true since the company record their assets and liabilities at all time, this is so, as it is necessary to provide the data while evaluating variables and also while providing a detailed balance sheet or financial report. In order for the shareholders and stakeholders to ponder before investing.