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Long-term liabilities are claims that come due when?
AMore than one year after the balance sheet date
BWithin one month of the balance sheet date
CWithin six months of the balance sheet date
DOn the same day as the balance sheet date
Answer & Solution
Correct answer: A. More than one year after the balance sheet date
1. Long-term liabilities come due more than one year after the date of the balance sheet.
2. They include bank loans, mortgages on buildings and the company's bonds sold to others.
3. Anything due within a year of that date is a current liability instead, and current liabilities are listed first.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.4 The Balance Sheet_
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