which of the following is considered liability* account payable account recivable note payable promissory note long term payable utility bill which of the following is a limit of a income statement?" Assumption based on revenue, expenses and profit use of judgment to make important decision on loss, net income Using activities that can be measured objectively assets and liabilities are recorded by their historical cost Its simply based on capitol stocks, capitol, profits and withdrawals 2 points 2 points