ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 291
c. Present obligation that entails settlement by probable future
transfer or use of cash, goods, or services.
d. Liquidation is reasonably expected to require use of existing
resources classified as current assets or create other current
liabilities.
35. Why is the liability section of the balance sheet of
primary importance to bankers?
a. To evaluate the entity's credit quality.
b. To assist in understanding the entity's liquidity.