Accountıng Iı Deneme Sınavı Sorusu #1063882
Which of the following is false about long-term liabilities?
|
They consist of an expected outflow of resources arising from present obligation. |
|
They have various covenants or restrictions for the protection of both lenders and borrowers. |
|
They are the most common way to finance the expansion of a business. |
|
They are payable within a year or the operating cycle of the company whichever is longer. |
|
Bonds payable, long-term notes payable and mortgages payable are example of long term liabilities. |
In a balance sheet, obligations related with external financing sources named as “liabilities”. Liabilities are first classified as “Current (ShortTerm) Liabilities” and “Non-Current (LongTerm) Liabilities” based on the time period in which expected debt will be paid back. Short term liabilities consist of an expected outflow of resources arising from present obligations that are payable within a year or the operating cycle of the company whichever is longer. Whereas long term liabilities consist of an expected outflow of resources arising from present obligations that are not payable within a year or the operating cycle of the company whichever is longer. The correct answer is D.
Yorumlar
- 0 Yorum