Which of the Following Liabilities Will Be Reported Only as a Current

question 4

Multiple Choice

Which of the following liabilities will be reported only as a current liability?

• A)Bank overdraft.
• B)Unearned revenue.
• C)Bond payable that matures in two years.
• D)Obligation under customer loyalty plan.

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Definitions:

Break-Even Point

The level of production or sales volume at which total revenues equal total expenses, resulting in zero profit or loss.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent and salaries.

Sales Mix

The ratio of various goods or services contributing to a company's overall sales.

Break-Even Point

The point at which total revenues equal total costs, and the business is neither making a profit nor incurring a loss.