Which of the Following Is Characteristic of Liabilities, Rather Than

question 190

Multiple Choice

Which of the following is characteristic of liabilities, rather than of equity? (More than one answer may be correct.)

• A) The obligation matures.
• B) Interest paid to the provider of the capital is deductible in the determination of taxable income.
• C) The capital providers' claims are residual in the event of liquidation of the business.
• D) The capital providers normally have the right to exercise control over business operations.

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