A Firm Classifies Liabilities Which Fall Due Within the Operating

question 77

Multiple Choice

A firm classifies liabilities which fall due within the operating cycle, usually one year, as

• A)a current liability.
• B)a long-term liability.
• C)a noncurrent asset.
• D)part of shareholders' equity.
• E)a contingent liability.

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Definitions:

Distribution

in economics, refers to the way total output, income, or wealth is distributed among individuals or among the factors of production (such as labor, land, and capital).

Production

The process of creating, manufacturing, or producing goods and services, involving labor, raw materials, and tools to fulfill human wants or needs.

Post-industrial Societies

Societies characterized by an economy in which the service sector produces more wealth than the industrial sector, emphasizing information technology and knowledge-based activities.

Knowledge-based Activities

Tasks or occupations that primarily involve the manipulation of information and knowledge, rather than physical labor or manual work.