A Note Payable Can Be Classified Either as a Long-Term

question 75

True/False

A note payable can be classified either as a long-term liability or a short-term liability,depending on the discretion of the accountant.

---

Definitions:

TIE Ratio

A financial performance indicator that shows a company's capacity to cover its interest expenses with its current earnings, highlighting its financial health and stability.

Target

In the business context, it generally refers to a specific objective or goal that a company or individual aims to achieve.

Operating Costs

Operating costs, or operating expenses, are the costs required for the day-to-day maintenance and administration of a business.

Financial Position

The status of a company or individual's assets, liabilities, and equity at a specific point in time, summarizing the economic resources and obligations.