If a Payment of Principal Is Due in 13 Months

question 22

Multiple Choice

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

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

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Definitions:

Redefine

To define again or differently, often in a way that reinterprets or gives new perspective to something.

Adaptability

The ability to adjust to new conditions or environments.

Separation

Separation involves the act or process of moving apart or forcing something apart, often applied to relationships, materials, or chemical elements.

Maturity

The state of being fully developed in body or mind, often associated with adulthood and the ability to respond to situations in an appropriate and responsible manner.