Which of the Following Statements Is/are Correct About Long-Term Loans

question 89

Multiple Choice

Which of the following statements is/are correct about long-term loans?

• A)Only statement I is correct
• B)Only statement II is correct
• C)Both statements I and II are correct
• D)Neither statement I nor II is correct

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Definitions:

Discontinued Operation

A component of a business that has been disposed of or is held for sale and represents a separate major line of business or geographical area of operations, segregated in financial reporting.

Management's Discussion

A section in a company's annual report where senior executives provide their perspective on the financial health, results, and future outlook of the company.

Journal Entries

Records of financial transactions in the accounting system that are entered in the general journal.

Liquidity

Liquidity refers to the ease with which assets can be converted into cash without significantly affecting their market price, crucial for meeting short-term obligations.