Which of the Following Is Not Normally a Current Liability

question 41

Multiple Choice

Which of the following is not normally a current liability?

• A)salaries payable
• B)accounts payable
• C)income tax payable
• D)bonds payable

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Definitions:

Hedge Ratio

The ratio of the value of a hedge (protective investment) to the value of the underlying assets, indicating the part of the asset's risk that is being mitigated.

Hedged Portfolio

An investment portfolio that uses strategies to offset potential losses or gains, aiming to reduce the risk of adverse price movements in its assets.

Delta

In finance, delta represents the rate of change of the theoretical option price with respect to changes in the underlying asset's price.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specified time.