All of the following statements regarding long-term liabilities are true except?

Question

All of the following statements regarding long-term liabilities are true, except for one. Please select the correct answer from the options provided.

Long-term liabilities include long-term notes payable, warranty liabilities, lease liabilities, and bonds payable. 
Long-term liabilities can be reported on the balance sheet as a single total or in multiple categories. 
Liabilities that do not have a fixed due date but are payable on demand are classified as long-term liabilities. 
A single long-term liability can be divided between current and noncurrent sections on the balance sheet. 
Liabilities that are not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities.

Angelica Fadel · Accepted Answer

Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities. Explanation:As we know thatBalance sheet is classified into three types i.e assets, liabilities and the stockholder equity      The liabilities are further categorized into current liabilities and long term liabilitiesIn the case of long term liabilities they do not contain a fixed due date and are payable on demand basis and the same is to be reported as a long term liabilities in the balance sheet

Bertram Boyer · Answer

C. Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.Explanation:The liabilities are the responsibility with regard to the amount that is borrowed by someone from any other person or financial institution. It is a responsibility of a person to return the borrowed amount within the prescribed time along with the interest. Its time period is more than one yearBased on the given options, the option A, B and D are correct but option D is not correct as they have the specified date Hence, the option C is correct

Anonymous · Answer

Long term liabilities.Explanation:This can be easily or mostly be used in companies and also firms. In most cases they are been tagged a non-current liability.They are generally defined to be obligations that are not been settled for/paid off in the current year or accounting period. Therefore, debts of this kind are not due within a year. Dept of this kind ranges from notes payable to bonds payable, also mortgages and are also seen as leases in a company settings.In as much as this is not good for a company's financial health, investors and creditors see how the company is financed through this. Current obligations are seen to be more risky than non-current debts because they will need to be paid sooner.

Amos Schaefer I

All of the following statements regarding long-term liabilities are true except?

3 Answers

AI-Powered Insights

Want to answer this question?

Categories

Tags

Related Questions