Which of the Following Should NOT Be Included in the Current

question 42

Multiple Choice

Which of the following should NOT be included in the current liabilities section of the statement of financial position?

• A) trade accounts payable
• B) current portion of long-term debt to be retired by non-current assets
• C) short-term zero-interest-bearing notes payable
• D) a liability due on demand (callable debt)

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Definitions:

Proprietorship

A business owned and operated by a single person, making it the simplest form of business ownership.

Business Owned

Refers to entities such as companies or enterprises that are possessed and controlled by one or more persons or other businesses.

Economic Entity Assumption

An accounting principle that treats a business as separate from its owners, allowing for independent financial statements.

Personal Living Expenses

Costs associated with daily living, including food, housing, transportation, and entertainment.