All of the following statements regarding liabilities are true except : A liabil

Question

All of the following statements regarding liabilities are true except:

A liability is a probable future payment of assets or services. Unearned future wages to be paid to employees should be recorded as liabilities. For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services. Information about liabilities is more useful when the balance sheet identifies them as either current or long term. All of the responses are correct.

Explanation / Answer

Unearned future wages to be paid to employees should be recorded as liabilities.

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