Liabilities Are Divided into ____

question 12

Multiple Choice

Liabilities are divided into ____.

• A) current and non-current
• B) short-term and accruable
• C) tangible and intangible
• D) short-term and long-term

---

Definitions:

Credit Instrument

A legal document representing a promise to pay a specified sum of money to the holder under agreed conditions, such as bonds, notes, or bills.

Indebtedness

The condition of owing money, often as a result of borrowing for business or personal needs.

Legal Document

A document that states some contractual relationship or grants some right, serving as official evidence of an agreement.

Business Transaction

An economic event or activity that changes an entity's financial statements, involving the exchange of goods, services, or funds between two or more parties.