Why Are Liabilities Separated into Current and Long-Term

question 81

Multiple Choice

Why are liabilities separated into current and long-term?

• A)Users want to know which amounts will be paid using current assets.
• B)Because current and long-term classifications are just common sense.
• C)This format helps a company determine how much profit was made.
• D)The SEC requires companies to do so.

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Definitions:

Hillary Clinton

An American politician, diplomat, and lawyer who served as the First Lady of the United States, U.S. Senator, and Secretary of State, and was the Democratic nominee for President in 2016.

Midterm Election

Elections held midway through the term of the sitting President of the United States, where a significant portion of the Congress and some state governors are elected.

Republicans in Congress

Republicans in Congress are members of the United States Congress who are part of the Republican Party, one of the two major political parties in the United States, often associated with conservative policies.

November 1994

A specific point in time, referring to the month of November in the year 1994, which may be significant for historical, political, or cultural events.