Which of the Following Is a Current Liability

question 148

Multiple Choice

Which of the following is a current liability?

• A) A long-term debt maturing currently, which is to be paid with cash in a sinking fund
• B) A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue
• C) A long-term debt maturing currently, which is to be converted into common stock
• D) None of these answers are correct.

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Definitions:

Cash Discount

A reduction in the price of goods or services offered to purchasers as an incentive for early payment.

Discount Date

The specified date when a payment is to be made with a discount for early settlement.

Due Date

The due date is the date by which a payment, bill, or other obligation must be paid.

Remittance

The act of sending money in payment or as a gift, often referring to funds sent by individuals working abroad to family members in their home country.