Which of the Following Is a Characteristic of a Current

question 130

Multiple Choice

Which of the following is a characteristic of a current liability?

• A)It is due within one year or one operating cycle, whichever is longer.
• B)It is due within five years or five accounting periods, whichever is longer.
• C)It is due within five years or five accounting periods, whichever is shorter.
• D)It is due within one year or one operating cycle, whichever is shorter.

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Definitions:

Bondholder's Risk

The risk that a bond issuer will default, resulting in the loss of both periodic interest payments and the principal investment to the bondholder.