alleryStart learning →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_
Keep practising Using Financial Information and Accounting
Browse all Using Financial Information and Accounting questions for US CMA Part 2, or explore more Financial Management topics.
Related questions
A bakery reports total liabilities of $70,150 and owners' equity of $78,750. What is its dCost of goods sold was $112,500, beginning inventory was $18,000 and ending inventory was How is the inventory turnover ratio calculated?What do activity ratios reflect?A bakery earned a net profit of $32,175 and has 10,000 shares of common stock outstanding.Earnings per share tells an investor what?A bakery earned a net profit of $32,175 and reports total owners' equity of $78,750. What Return on equity measures what?