Which Is a Non-Current Liability

question 35

Multiple Choice

Which is a non-current liability?

• A)HST payable.
• B)45 day accounts payable.
• C)Five year loan that matures four months after year end reporting date.
• D)The creditor has granted a 15-month grace period on a loan in default.

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Definitions:

Discount Rate

The interest rate fundamental to converting future cash flows into their present financial equivalent in discounted cash flow analysis.

Annual Operating Costs

The total expenses associated with running a business, facility, or equipment for one year, including utilities, salaries, and maintenance.

Additional Revenue

Income generated from activities not related to the primary operation of the business.

Straight-Line Depreciation

A scheme for disbursing the expenditure of a physical property over its operational lifespan in equivalent annual quotas.