The Current Liabilities of a Business May Include

question 107

Multiple Choice

The current liabilities of a business may include:

• A) notes payable
• B) accounts receivable
• C) prepaid expenses
• D) depreciation reserves

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Definitions:

Plant Asset

Long-term physical assets used in the operation of a business that are not intended for resale, such as buildings, machinery, and equipment.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Inventions

Novel and unique creations or discoveries that are the result of human creativity and ingenuity.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or age.