Debts That Are to Be Paid Off Within a Year

question 12

Multiple Choice

Debts that are to be paid off within a year are called

• A) intermediate-term liabilities.
• B) one-year liabilities.
• C) current liabilities.
• D) insignificant debts.

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Definitions:

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated as total assets minus intangible assets (patents, copyrights) and liabilities.

Driven Miles

A metric typically used to measure the distance covered by a vehicle, often for accounting and reimbursement purposes.

Double-Declining-Balance Method

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.