A Long-Term Liability Is ________

question 64

Multiple Choice

A long-term liability is ________.

• A) the process of distributing the cost of an asset over its useful life
• B) the amount paid for an existing business above the value of its other assets
• C) a debt that must be paid within the year
• D) a debt that is not due for at least one year

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Definitions:

Liability Insurance

A form of insurance coverage that protects an individual or business from the risk associated with being found legally liable for various kinds of wrongs such as accidents or injuries.

Implied Warranty

A legal term referring to a warranty that is not expressly stated but is assumed by law to exist in a sale.

Release

A legal agreement where one party forfeits the right to pursue a claim or lawsuit against another party.

Damages

A monetary compensation awarded by a court to a person who has suffered a loss or injury.