Which of the following statements about liabilities is correct?
a. When a liability is first recorded, it is measured as the value of what is received when it is incurred (e.g., cash borrowed) or the fair value (present value) of what is promised to be paid—whichever is more evident.
b. A decrease in a long term liability will increase a firm’s Current Ratio.
c. Accrued liabilities are expenses that have been incurred before the end of an accounting period but have not been paid.
d. All of the above are correct.
e. Only A & C are correct.
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