Non-Current Liabilities Include

question 22

Multiple Choice

Non-current liabilities include

• A) obligations not expected to be liquidated within the next year or operating cycle.
• B) obligations payable at some date beyond the next year or operating cycle.
• C) deferred income taxes and most lease obligations.
• D) All of these choices are correct.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Depreciation Schedule

A table that shows the decline in value of an asset over time, which impacts financial and tax reporting.

Corporate Tax Rate

The percentage of a corporation's profit that is paid as tax to the government.

After-Tax Cash Outlay

The net cash expense after adjusting for taxes, often relevant in capital budgeting and investment analysis.