Long-Term Liabilities Are Mostly For

question 29

Multiple Choice

Long-term liabilities are mostly for:

• A)operating activities
• B)financing activities.
• C)investing activities.
• D)both A and B.

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the estimated costs of completion and the costs necessary to make the sale.

FIFO Periodic

An inventory valuation method where the oldest inventory items are recorded as sold first, under a periodic system that updates inventory balances at the end of an accounting period.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, carried over from the end of the prior period.

Sold Units

The number of units of a product or goods that have been sold during a specific period.