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.

---

Definitions:

Germinal Period

The earliest stage of fetal development that covers the first two weeks after conception, involving rapid cellular division and implantation to the uterine wall.

Embryonic

Pertaining to the embryo, the early stage of development in multicellular organisms.

Neonatal

Referring to the period shortly after birth, typically considered the first four weeks of life in humans.

Atherosclerosis

Arteriosclerosis characterized by irregularly distributed lipid deposits in the intima of large and medium-sized arteries.