All Long-Term Liabilities Eventually Become Current Liabilities

question 131

True/False

All long-term liabilities eventually become current liabilities.

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Definitions:

Common Stock Dividend

Payments made to shareholders out of a company's earnings, reflecting a portion of the profit allocated for each share of common stock.

Legal Financial Obligation

A requirement to pay money as determined by a legal process or by law.

Declared

Pertains to a dividend or other distribution officially announced by a company's board of directors to be paid to shareholders.

Automatic Dividend Reinvestment

A program that allows investors to reinvest their cash dividends in additional shares or fractional shares of the underlying stock automatically.