Among the Short-Term Obligations of Larsen Company as of December

question 61

Multiple Choice

Among the short-term obligations of Larsen Company as of December 31, the balance sheet date, are notes payable totaling $250,000 with the Dennison National Bank. These are 90-day notes, renewable for another 90-day period. These notes should be classified on the balance sheet of Larsen Company as

• A) current liabilities.
• B) deferred charges.
• C) long-term liabilities.
• D) intermediate debt.

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Definitions:

Industry Demand

The total demand for products or services within a particular industry or sector.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a state of market balance.

Number of Firms

It refers to the total count of enterprises operating within a certain market or industry.

Industry

A sector of the economy that produces a related set of goods or services.