On January 5, Thomas Company, Which Follows a Calendar Year

question 104

Multiple Choice

On January 5, Thomas Company, which follows a calendar year, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 each of the next four years. The proper balance sheet presentation on December 31 is

• A) Current liabilities, $1,000,000
• B) Current liabilities, $250,000; Long-term debt, $750,000
• C) Long-term debt, $1,000,000
• D) Current liabilities, $750,000; Long-term debt, $250,000

---

Definitions:

Computers

Electronic devices capable of executing a set of instructions to perform a vast array of tasks, from basic calculations to complex data processing and analysis.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another.

Tulips

A type of flowering plant that is widely cultivated for its bright, large, and often colorful flowers.

Comparative Advantage

A concept in economics where a country or entity can produce a good at a lower opportunity cost than another, leading to more efficient trade benefits.