Which of the Following Is an Example of Long-Term Liability

question 68

Multiple Choice

Which of the following is an example of long-term liability?

• A) Accounts payable
• B) Accounts receivable
• C) Accrued payable
• D) Mortgage payable

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Definitions:

Risk-Adjusted

A process of modifying financial projections or valuations to account for the uncertainty and potential risk involved.

Cost of Equity Capital

The return that investors expect for providing capital to a company, factoring in the risk of equity investments.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to a share of the profits and voting rights.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting and reporting standards in the U.S.