Liabilities Are Divided into Two Categories

question 23

Multiple Choice

Liabilities are divided into two categories:

• A) current and payable.
• B) current and future.
• C) accounts payable and long-term.
• D) current and long-term.

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Definitions:

Contracts

Legal agreements between two or more parties that are binding in law.

Foreign Corrupt Practices Act

A United States law that prohibits U.S. companies and their employees from bribing foreign officials to retain or obtain business.

Foreign Companies

Companies that are incorporated in one country but operate, have offices, or conduct significant business activities in other countries.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.