A Current Liability Is a Debt the Company Reasonably Expects

question 246

Multiple Choice

A current liability is a debt the company reasonably expects to pay from existing current assets within

• A)one year.
• B)the operating cycle.
• C)one year or the operating cycle, whichever is longer.
• D)one year or the operating cycle, whichever is shorter.

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Definitions:

Quadratic Function

A polynomial function of the second degree, generally represented as f(x) = ax^2 + bx + c, where a, b, and c are constants and a ≠ 0.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to gain immediate cash.

Quadratic Formula

A formula used to solve for x given a quadratic equation; x = (–b ± √(b^2 – 4ac)) / 2a.

Expense Equation

The sum of the fixed and variable expenses.