Long-Term Liabilities Are Significant to Users for All of the Following

question 34

Multiple Choice

Long-term liabilities are significant to users for all of the following reasons,except

• A)it affects the company for many years into the future.
• B)it has an impact on the firm's liquidity.
• C)it provides information on potential litigation and contractual obligations.
• D)it provides information about the health of employee pension plans.

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Definitions:

International Business

Commercial transactions and activities that occur across national borders.

Transnational Corporation

A global corporation or multinational enterprise that operates worldwide on a borderless basis.

Multinational Corporation

A company that operates in multiple countries, managing production or delivering services in more than one country beyond its home base.

Chemical Factory

An industrial site dedicated to producing chemicals where raw materials are processed and combined through chemical reactions.