Which of the Following Should Be Excluded from Long-Term Liabilities

question 50

Multiple Choice

Which of the following should be excluded from long-term liabilities?

• A) Obligations payable at some date beyond the operating cycle.
• B) Most pension obligations.
• C) Long-term liabilities that mature within the operating cycle and will be paid from a sinking fund.
• D) Obligations payable at some date within the operating cycle.

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Definitions:

Condition Precedent

A condition that operates to give rise to a contracting party’s duty to perform.

Close of Escrow

The finalization of a real estate transaction, where all conditions have been met and the property's title is transferred from the seller to the buyer.

Condition Subsequent

A condition in a contract that, when it occurs, terminates an existing obligation, making the contract's terms no longer binding.

Al Gore

A former Vice President of the United States who has been notably active in raising awareness about global warming and environmental issues.