All of the Following Statements Regarding Long-Term Liabilities Are True

question 128

Multiple Choice

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

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

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Definitions:

Service Equipment

Assets and tools required for the maintenance, repair, and operation of buildings and services, typically not directly tied to production operations.

Amortized

Refers to the process of gradually reducing the cost or value of an asset or debt through periodic payments over a set period.

Lease Payment

Regular payments made by a lessee to a lessor for the use of an asset, such as real estate or equipment, over a specified period.

Original Investment

The initial amount of money used to purchase an asset or security or to fund a project.