Question Details

The cause for litigation must have occurred on or before the date 




True or false:
1.	The cause for litigation must have occurred on or before the date of the financial statements to report a liability in the financial statements.

	2.	Under the expense warranty approach, companies charge warranty costs only to the period in which they comply with the warranty.

	3.	Prepaid insurance should be included in the numerator when computing the acid-test (quick) ratio.

	4. Paying a current liability with cash will always reduce the current ratio.

	5.	Current liabilities are usually recorded and reported in financial statements at their full maturity value.




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