Asked by Libby Burchett on Jul 21, 2024
Verified
Cash received from customers may result in a current liability.
Current Liability
A company's debts or obligations that are due within one year or within the normal operating cycle.
- Identify the effects of different transactions on current liabilities and assets.
Verified Answer
SA
SHUNMUGA ASHOK RJul 27, 2024
Final Answer :
True
Explanation :
Cash received from customers may result in a current liability if it is received in advance of the goods or services being provided. This creates an obligation to fulfill the order or provide the service, which is considered a current liability until the transaction is completed.
Learning Objectives
- Identify the effects of different transactions on current liabilities and assets.