Is a Bank Loan Considered to Be a Long-Term Liability

question 6

Multiple Choice

Is a bank loan considered to be a long-term liability?

• A)No,a bank loan is just a liability
• B)Yes,a bank loan is considered to be a long-term liability
• C)It depends on the interest-free length of the loan
• D)All of these choices

---

Definitions:

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies the degree to which these points differ from the mean.

Distribution Plans

Strategies or policies set by a company or organization for delivering goods or services to customers, encompassing logistics, transportation, and channels of distribution.

Initial Setup Costs

The expenses incurred during the setting up of a new business, project, or system before it is operational.

Economic Condition

The state of a country or region in terms of the production and consumption of goods and services and the supply of money.