Which of the Following Is an Example of a Long-Term

question 83

Multiple Choice

Which of the following is an example of a long-term liability?

• A)Trade payables
• B)Income taxes payable
• C)Bonds payable
• D)Salaries payable

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Definitions:

Cash Inflows

Money that enters a business from various sources, contributing to its revenue or capital.

Required Rate

The minimum expected rate of return on an investment, setting a benchmark for acceptable investment performance.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, demonstrating the percentage of tax applied to your next dollar of income.

Depreciation

A method to allocate the cost of a tangible asset over its useful life, reflecting the decrease in value over time.