Which of the Following Is a Characteristic of a Current

question 36

Multiple Choice

Which of the following is a characteristic of a current liability but not a long-term liability?

• A) Unavoidable obligation.
• B) Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.
• C) Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities.
• D) Transaction or other event creating the liability has already occurred.

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Definitions:

Inverse Demand Curve

A graph illustrating the relationship between price and quantity demanded, showing price on the Y-axis and quantity on the X-axis, essentially reversing the axes of a standard demand curve.

Marginal Costs

The increase in the full cost incurred by generating an additional unit of a product or service.

Perfect Price Discrimination

A pricing strategy where a seller charges each buyer their maximum willingness to pay, capturing the entire consumer surplus.

Total Profits

The total income of a business after subtracting total expenses from total revenue, showing the final earning.