Which of the Following Would Be Considered a Long-Term Liability

question 45

Multiple Choice

Which of the following would be considered a long-term liability?

• A)A charge accountpayment
• B)A mortgage
• C)An installment loan
• D)An amount due for taxes
• E)The amount due on a credit card

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Definitions:

Service Revenue

Income earned by a company for the services it provides to its clients.

Adjusting Entries

Journal entries made at the end of an accounting period to update certain accounts and report revenues and expenses in the appropriate period.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life.

Supplies Expense

An accounting term referring to the cost of supplies consumed or used by a business within a reporting period.