The Following Items Are Taken from the Financial Statements of the Postal

question 80

Multiple Choice

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018:
What are total long-term liabilities at December 31, 2018?

• A) $0
• B) $70,000
• C) $88,000
• D) $90,000

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Definitions:

Operating Cycle

The average time period between the acquisition of materials for production and the receipt of cash from sales of the finished goods, critical for managing cash flow.

Current Liabilities

Financial obligations that a company is expected to pay within one year.

Liquidity

The ability to pay current obligations.

Liabilities

Financial obligations or debts that a company owes to external parties.