An Example of a Long-Term Liability Is

question 2

Multiple Choice

An example of a long-term liability is:

• A) Current taxation payable
• B) Mortgage
• C) Proposed dividend
• D) Accumulated depreciation

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand forces.

Common Stock

Equity ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Stock Split

A corporate action that increases the number of a company’s outstanding shares by dividing each share, which in turn reduces the price per share.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the legal capital per share.