Which of the Following Liabilities Is Often Referred to as "Free

question 46

Multiple Choice

Which of the following liabilities is often referred to as "free debt" because it rarely carries any interest if paid within a specified period of time.

• A)Line of credit.
• B)Working capital loan.
• C)Accounts payable.
• D)None of the above-all current liabilities carry an interest rate.

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Definitions:

Fibrositis

Fibrositis, often called fibromyalgia, is a chronic condition characterized by widespread muscle pain, fatigue, and tender points on the body.

Connective Tissue

Tissue that supports, binds together, and protects organs and other body structures, composed of cells embedded in an extracellular matrix.

Fibrosis

The formation of excess fibrous connective tissue in an organ or tissue in a reparative or reactive process.

Smooth Muscle Tone

The continuous and passive partial contraction of smooth muscles, which helps maintain functions like blood pressure and digestion.