Of the Following, Which Typically Would Not Be Classified as a Current

question 84

Multiple Choice

Of the following, which typically would not be classified as a current liability?

• A) Estimated liability from cash rebate program.
• B) A long-term note payable maturing within the coming year.
• C) Rent revenue received in advance.
• D) A six-month bank loan to be paid with the proceeds from the sale of common stock.

---

Definitions:

Large Batches

Production method where goods are manufactured in significantly large quantities at once, often leading to economies of scale but increased inventory.

JIT Partnerships

Collaborations between suppliers and manufacturers to implement Just-In-Time inventory strategies, minimizing stock levels and reducing waste.

Engineering Changes

Adjustments or modifications made to the design or specifications of a product or system, often to improve functionality or performance.

Lot Sizes

The quantity of items that are processed, produced, or ordered as a batch, impacting inventory levels and manufacturing efficiency.