Kurt Has a 5-Year Bank Loan with His Business

question 3

Multiple Choice

Kurt has a 5-year bank loan with his business.The principle that is scheduled to be paid in the first 12 months is considered ______.

• A)a loss
• B)a long-term liability
• C)a short-term portion of long term debt
• D)operational cash flows

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Definitions:

Project B

A term that typically denotes a specific plan, task, or initiative identified by "B" to distinguish it from other projects.

Net Present Value

A financial metric that measures the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows.

Automated Equipment

Machinery that operates with minimal human intervention, often used to increase production efficiency and consistency.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations.