Liabilities Are Generally Classified on a Balance Sheet as

question 66

Multiple Choice

Liabilities are generally classified on a balance sheet as

• A)small liabilities and large liabilities.
• B)present liabilities and future liabilities.
• C)tangible liabilities and intangible liabilities.
• D)current liabilities and long-term liabilities.

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Definitions:

Redeems

The act of exchanging something such as coupons, vouchers, or securities for goods, services, or money.

Gain

Financial benefit realized from activities such as the sale of an asset for more than its original purchase price.

Loss

A financial condition indicating that expenses have exceeded revenues, leading to a negative income.

Bonds Payable

Long-term liabilities on a company's balance sheet, representing debt obligations that the company must repay to bondholders at a specified date.