If a Payment of Principal Is Due in 13 Months

question 89

Multiple Choice

If a payment of principal is due in 13 months on a long-term liability,that payment will now appear as:

• A) a current liability.
• B) long-term debt.
• C) cash.
• D)interest expense

---

Definitions:

Cost Flows

The process of tracking the movement of costs in the production process, from initial acquisition of materials to the final sale of finished goods.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Control Levels

The different stages or layers of management and supervision within an organization, designed to ensure policies and procedures are implemented effectively.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, leading to more accurate product costing.