Liabilities Reflected on the Balance Sheet Are Divided into Two

question 115

True/False

Liabilities reflected on the balance sheet are divided into two general categories: current (debts to be paid within one year) and long term (due more than a year into the future).

---

Definitions:

Yield To Maturity

The total expected return on a bond if held to its maturity date, taking into account both interest payments and capital gains or losses.

Premium

The amount paid for an insurance policy or an additional amount above the nominal or face value of securities.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The expected complete return on a bond when retained through its entire lifespan.