Which of the Following Should Be Excluded from Long-Term Liabilities

question 71

Multiple Choice

Which of the following should be excluded from long-term liabilities?

• A) Obligations payable at some date beyond the operating cycle
• B) Most pension obligations
• C) Long-term liabilities that mature within the operating cycle and will be paid from a sinking fund
• D) None of these answer choices are correct.

Identify strategies and tools for optimizing cash balances and managing float effectively.

Distinguish between various motives for holding cash and how they influence cash management policies.

Apply the concept of Net Present Value (NPV) to decisions regarding cash management services.

Comprehend the implications of cash concentration and collection strategies on a firm's liquidity.

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Definitions:

Intangible Asset

An identifiable non-monetary asset without physical substance, such as patents, trademarks, and goodwill, that provides economic benefits.

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Legal Life

The duration for which an entity, asset, or agreement is legally effective or recognized.

Patent

A legal right granted by a government authority that gives an inventor exclusive rights to make, use, or sell an invention for a specified time period.