All of the Following Are Considered to Be Long-Term Liabilities

question 139

Multiple Choice

All of the following are considered to be long-term liabilities for Parsons Company except:

• A) Bonds issued this year (due in 10 years).
• B) The third year payments for a three-year lease signed this year.
• C) The current year portion of Deferred taxes.
• D) The principal of a note payable signed this year, but due in five years.

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Definitions:

Working Capital Management

The management of a company’s short-term assets and liabilities to ensure its continued operation and maximize financial efficiency.

Inventory Management

The supervisory process focusing on ordering, storing, using, and selling a company's inventory.

Short-Term Debt Financing

Borrowing of funds for a period of one year or less to meet short-term financial needs of a company.

Credit Availability

The ease with which individuals or businesses can obtain loans or credit.