Asked by Alyssa Hirschy on May 27, 2024
Verified
All of the following statements regarding long-term liabilities are except?
A) Liabilities not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities.
B) Long-term liabilities include long-term notes payable, warranty liabilities, lease liabilities, and bonds payable.
C) Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.
D) Long-term liabilities can be reported on the balance sheet in a single total or in multiple categories.
E) A single long-term liability can be divided between current and noncurrent sections on the balance sheet.
Bonds Payable
A liability account in financial accounting that represents amounts owed by a company to bondholders, to be repaid at a specified future date.
- Distinguish between current and long-term liabilities on the balance sheet.
Verified Answer
LS
lissette saraibaMay 27, 2024
Final Answer :
C
Explanation :
Liabilities that do not have a fixed due date and are payable on demand are reported as current liabilities, not long-term liabilities.
Learning Objectives
- Distinguish between current and long-term liabilities on the balance sheet.