On the Company's 20X0 Year-End Statement of fiNancial Position, the Liability

question 33

Multiple Choice

On the company's 20X0 year-end statement of financial position, the liability related to this note should be reported as which of the following?

• A) A $12,480 long-term liability.
• B) A $12,480 current liability.
• C) A $12,000 long-term liability.
• D) A $12,000 current liability.

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Definitions:

Decision Makers

Individuals or groups within an organization responsible for making choices that affect the company’s strategy, operations, and financial outcomes.

Adjusting Journal Entries

Entries made in the accounting records to correct errors or allocate income and expenses to the correct periods.

Journal Entry Icon

A graphical representation or shortcut in software, used to access the feature where financial transactions are manually recorded.

Trial Balance

A bookkeeping report that lists the balances of all ledgers and accounts to check that debits equal credits in the double-entry accounting system.