All of the Following Are Characteristics of Current Liabilities Except

question 9

Multiple Choice

All of the following are characteristics of current liabilities except

• A)they may be replaced with a new short-term liability rather than being paid in cash.
• B)they may involve estimated amounts.
• C)they are due within one year or within the operating cycle,whichever is longer.
• D)All three of these are characteristic of current liabilities.

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Definitions:

Temporary

Pertaining to an employee, position, or status that is intended for a limited time period, often with an end date in mind.

Permanent

Describes assets or records that are intended to be held or used on a long-term basis and not expected to be sold or otherwise converted into cash within a year.

General Journal

A journal used to record all types of accounting transactions with detailed explanations.