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After the MCLeans filled their swimming pool, which was recently built in their backyard, swarms of bees came regularly for water. The bees stung everyone including the dog and made it impossible for the MCLeans to enjoy the use of their pool. Unknown to the MCLeans when they had the pool installed, their neighbour Springborn had bee hives on his property. On these facts, which of the following is true?
Current Liability
A financial obligation that is due to be paid within one year or within the normal operating cycle of the business, whichever is longer.
Premium on Bonds Payable
The surplus by which bonds exceed their nominal value when sold.
Contra-Liability Account
An account on a company's balance sheet that reduces the amount of a liability, serving as a negative balance to that liability.
Straight-Line Amortization
A technique for distributing the expense of an intangible asset uniformly across its lifespan.
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