Current Liabilities as Reported on the Balance Sheet Do NOT

question 62

Multiple Choice

Current liabilities as reported on the balance sheet do NOT include:

• A)current maturities of long-term debt.
• B)income taxes payable.
• C)salaries payable.
• D)treasury stock.

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Definitions:

Financial Leverage

Utilizing borrowed money to enhance the possible gains from an investment.

Tax Rate

The proportion of tax that an individual or business must pay on their earnings.

ROE

Return on Equity; a measure of the profitability of a business in relation to the equity, calculated as net income divided by shareholder equity.

Assets

Resources owned by a company that have economic value and can be converted into cash, including but not limited to property, plant, equipment, and intellectual property.