Long-Term Liabilities Are

question 5

Multiple Choice

Long-term liabilities are

• A)debts that are due in less than six months.
• B)debts that will be repaid over a number of years.
• C)assets.
• D)equity.
• E)retained earnings.

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Definitions:

Bond Discount

The financial disparity that occurs when a bond is sold for an amount below its stated face value, comparing its selling price to its face value.

Interest Method

A financial calculation used to determine the amount of interest due or earned over a specific period of time, considering factors like principal, rate, and time.

Annuity

An investment vehicle that provides a consistent series of payments to a person, mainly serving as a source of income for those who have retired.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.