Which of the Following Are Included in Current Liabilities

question 121

Multiple Choice

Which of the following are included in current liabilities?

• A) Note payable to a supplier in eighteen months.
• B) Debt payable to a mortgage company in nine months.
• C) 30 year bonds.
• D) Retained earnings.
• E) Shareholders' equity.

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Definitions:

Fixed Costs

Charges that stay the same no matter the scale of production or sales, like rent, salaries, and insurance.

Variable Costs

Expenses that vary depending on the amount of products or services a company generates.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in activity level but not in the same proportion.

Variable Costs

Expenditures that adjust in alignment with production levels or sales quantities, notably including labor and raw materials.