Which of the Following Statements BEST Describes the Difference Between

question 93

Multiple Choice

Which of the following statements BEST describes the difference between current and long-term liabilities?

• A) Current liabilities are debts that need to be paid immediately, whereas long-term liabilities do not.
• B) Current liabilities are those which will cost less in debt interest than long-term liabilities.
• C) Current liabilities are debts that are settled sooner than long-term debts.
• D) Current liabilities are debts on tangible assets, whereas long-term liabilities are debts on intangible assets.
• E) Current liabilities are debts on current assets, whereas long-term liabilities are debts on fixed and intangible assets.