A Long-Term Liability Is

question 95

Multiple Choice

A long-term liability is

• A) additional money,above proceeds from a sale of shares,paid directly to a firm by its owners.
• B) a debt that must be paid within the year.
• C) the amount paid for an existing business above the value of its other assets.
• D) the process of distributing the cost of an asset over its useful life.
• E) a debt that is not due for at least one year.

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Definitions:

Leap Years

Years that are divisible by 4 (except for years divisible by 100, unless they are also divisible by 400), having 366 days to keep the calendar year synchronized with the astronomical year.

Maturity Value

The total amount that will be received at the maturity date of an investment, including the principal and any accrued interest.

365-Day Year

A method used in finance calculations that assumes all years have 365 days for the purpose of simplifying interest calculations.

Maturity Value

The amount to be paid out or the final value of an investment upon its maturity, including the principal and the interest earned.