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.

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Definitions:

Psychogenic Amnesia

A type of amnesia caused by psychological factors rather than physical injury or disease, often linked to traumatic or stressful events.

Neurotic Personality

A personality trait characterized by chronic anxiety, depression, and emotional instability.

Neurotransmitter Imbalance

A condition where there is an irregular level of neurotransmitters in the brain, potentially leading to various psychological or neurological disorders.

Childhood Trauma

Emotional and physical adverse experiences during childhood that can have long-lasting effects on an individual's mental and physical health.