Which of the Following Is Not a Current Liability

question 92

Multiple Choice

Which of the following is not a current liability?

• A)A liability due within one year for a business with a fifteen-month operating cycle.
• B)A liability due within three months for a business with a two-month operating cycle.
• C)A liability due within one year for a business with a nine-month operating cycle.
• D)A liability due within fifteen months for a business with a one-year operating cycle.

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Definitions:

Nonparticipating

A term typically used in insurance, referring to policies that do not entitle the policyholder to share in the insurer's surplus or profits.

Cumulative

A term referring to an attribute of financial items (like dividends) that accumulate over time until they are paid or settled.

Preferred Stock

A class of stock with preferential rights over common stock, often including fixed dividends and priority in assets upon liquidation.

Noncash Assets

Assets that are not in the form of cash or cannot be easily converted to cash, such as property, plant, and equipment.