Which of the Following Would Be a "Non-Current Liability

question 61

Multiple Choice

Which of the following would be a "non-current liability"?

• A)Payment due after 3 years,but the company has violated the debt covenants.
• B)Payment due to a supplier 45 days after year end for supplies received before year end.
• C)Payment due to a supplier in 18 months for goods to be received 3 months after year end.
• D)Payment due after 3 years,on which the debt covenants have been not been violated.

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Definitions:

Accounts Receivable

This term represents money owed to a business by its clients for goods or services delivered but not yet paid for.

Controlling Account

A general ledger account that summarizes the total amounts listed in a subsidiary ledger.

Cash Payments Journal

A financial journal that records all cash payments made by a business, including expenses, asset purchases, and debt payments.

Sales Discounts

Refers to reductions from the listed price of goods or services, offered by sellers to buyers, typically as an incentive or reward.