A liability is defined as:
Explanation
Liabilities represent what the firm owes to outsiders.
Other questions
Which of the following best describes the fundamental accounting equation?
What is a primary limitation of the balance sheet for financial analysis?
Under IFRS, when is a liquidity-based balance sheet presentation format allowed?
Which of the following is classified as a current liability?
Treasury stock is best described as:
In a vertical common-size balance sheet, each item is expressed as a percentage of:
Which ratio measures a firm's ability to satisfy its short-term obligations?
How is the Quick Ratio (Acid-Test Ratio) calculated?
If a company has Total Assets of 1,000 and Total Equity of 400, what is its Financial Leverage Ratio?
Which of the following is considered a component of Accumulated Other Comprehensive Income (OCI)?
Which measurement basis involves estimating the amount that will be collected from customers?
How are inventories typically measured under US GAAP?
Minority interest refers to:
Which of the following is considered a Cash Equivalent?
What does the 'Current Portion of Long-Term Debt' represent?
Accrued liabilities generally include:
A firm has Current Assets of 500 and Current Liabilities of 250. What is its Current Ratio?
Which equity component represents the cumulative net income of the firm since inception minus all dividends paid?
Which of the following is an example of an item found in Accumulated Other Comprehensive Income (OCI)?
Which of the following represents a limitation of the balance sheet regarding asset valuation?
Working capital is calculated as:
Which solvency ratio measures the percentage of total assets financed by debt?
Contributed capital is best defined as:
A 'Classified Balance Sheet' distinguishes between:
Which of the following assets is most likely to be excluded from the Cash Ratio calculation?
Solvency refers to a firm's ability to:
In a common-size balance sheet, a decrease in the inventory percentage over time might indicate:
If a firm has Cash of 100, AR of 200, Inventory of 300, and Current Liabilities of 400, what is its Quick Ratio?
Which liability typically involves a written promissory note?
Which of the following is an intangible asset with an indefinite life?
Under the revaluation model (IFRS), long-lived assets are reported at:
Preferred stock is characterized by:
If a company repurchases its own stock, the immediate effect on the balance sheet is:
Which ratio would be most useful for a bank to assess the financial leverage of a borrower?
Standard costing for inventory involves:
Which of the following is a component of 'Other' current assets?
The Financial Leverage Ratio is defined as:
What does a Debt-to-Capital ratio of 0.5 imply?
Under US GAAP, can inventory be written up if its value recovers?
Which of the following describes 'Unearned Revenue'?
The 'Operating Cycle' is best described as:
Which account acts as a contra account for Accounts Receivable?
Which of the following is a non-current liability?
Under IFRS, Inventory can be written down and:
Deferred Tax Liabilities typically arise when:
If a firm has Equity of 1000 and the Debt-to-Equity ratio is 1.5, what is the Total Debt?
Which of the following is typically NOT a component of Equity?
When assessing liquidity, why might the Cash Ratio be preferred over the Current Ratio?
A 'Clean Opinion' from an auditor (referenced in broader analysis context) generally implies: