Liabilities Are Classified on the Balance Sheet as Current or

question 60

Multiple Choice

Liabilities are classified on the balance sheet as current or

• A)deferred.
• B)unearned.
• C)long-term.
• D)accrued.

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Definitions:

Accounts Receivable

Amounts owed to a business by customers for goods or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held in stock by a business, part of the company's current assets.

Seasonal Peaks

Periods within a year marked by a higher than average demand, sales, or activity in certain industries due to seasonal factors.

Temporary Working Capital

Funds a company temporarily needs to cover its short-term obligations.