All of the following statements regarding liabilities are true except. Multiple Choice 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. Liabilities can linvolve uncertainty in whom to pay.
Correct option: Unearned future wages to be paid to employees should be recorded as liabilities. Explanation: A Liability is an obligation (resulting from certain events or transactions) for payment of assets or services in future. Liability can involve uncertainty, like Contingent liabilities (where liabilities arise on the happening of certain events). In the balance sheet, liabilities are classified under Current liabilities and Long-term liabilities. Accrued wages are classified as current liability, as it is going to pay off in very short period. Based on above explanation, it can be concluded that the correct option is ‘Unearned future wages to be paid to employees should be recorded as liabilities'