A Liability Is Classified as a Current Liability If It

question 146

True/False

A liability is classified as a current liability if it is to be settled within one year from the balance sheet date or in the company's normal operating cycle.

---

Definitions:

Market Price

The current financial demand for buying or selling a service or asset.

Debt Issue

Refers to a financial obligation or securities, such as bonds, that are issued by a company in order to raise funds.

Capital Structures

Refers to the way a corporation finances its assets through a combination of debt, equity, or hybrid securities.

Equity Plan

A compensation strategy companies use to provide their employees with ownership interest in the company, often through stock options or shares.