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

question 86

Multiple Choice

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

• A)A charge accountpayment
• B)A 36 month car loan
• C)An installment loan
• D)An amount due for taxes
• E)The amount due on a credit card

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Definitions:

Statement of Cash Flows

A financial report that details the amount of cash and cash equivalents entering and leaving a company.

Long-term Assets

Assets intended for use over an extended period, typically exceeding one year, such as buildings, machinery, or land.

Investing Activity

Transactions involving the acquisition or sale of long-term assets and other investments not included in cash equivalents.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company.