Asked by Vritra Official on May 25, 2024
Verified
All of the following statements regarding long-term liabilities are true 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.
Warranty Liabilities
Obligations that a company holds to repair or replace a product within a specified period due to defects or failures.
Lease Liabilities
Lease liabilities represent a lessee's obligation to make lease payments arising from a lease, as recorded on the balance sheet under new accounting standards.
Bonds Payable
A long-term debt instrument issued by corporations, government agencies, and other entities to finance operations and projects, which requires repayment of the principal amount and interest.
- Record and report long-term liabilities and their division between current and noncurrent sections on the balance sheet.
Verified Answer
Learning Objectives
- Record and report long-term liabilities and their division between current and noncurrent sections on the balance sheet.
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