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:

Purpose

The justification or rationale for an item's creation or being.

Budget

An estimate of income and expenditure for a set period of time.

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A set of recommendations or principles provided to direct actions or standards of behavior in specific situations.

Style

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