On January 1, 2021, Donahue Company, a Calendar-Year Company, Issued

question 121

Multiple Choice

On January 1, 2021, Donahue Company, a calendar-year company, issued $600,000 of notes payable, of which $150,000 is due on January 1 for each of the next four years.The proper balance sheet presentation on December 31, 2021, is

• A)Current liabilities, $600,000.
• B)Long-term debt , $600,000.
• C)Current liabilities, $150,000; Long-term debt, $450,000.
• D)Current liabilities, $450,000; Long-term debt, $150,000.

---

Definitions:

Management Concept

A theory or idea that provides a framework for effective management practices, including planning, organizing, leading, and controlling.

Flexible Product Designs

Products designed with the capability to be customized or adapted to meet different needs or preferences.

Production Processes

The steps, methods, or sequence of activities involved in the manufacture or production of goods.

Changing Wants

The evolving desires and needs of consumers or clients over time, impacting market demand and business strategies.