Accounts Payable Would Be Reported on the Balance Sheet as A(n)

question 81

Multiple Choice

Accounts Payable would be reported on the balance sheet as a(n) :

• A)long-term liability
• B)current liability
• C)other liability
• D)current asset

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Definitions:

Risk and Return

The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.

Moral Hazard

The tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior.

Diversification

An investment strategy that minimizes risk by allocating assets among various financial instruments, industries, or other categories.

Market Risk

Risk that affects all companies in the stock market.