Current Liabilities Include All of the Following Except

question 67

Multiple Choice

Current liabilities include all of the following except

• A)this year's monthly car payments on a three-year loan.
• B)the total mortgage on a home.
• C)the amount due on a credit card.
• D)next month's payment on a student loan.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Interest Income

Income earned from investments such as savings accounts, bonds, or loans, usually calculated as a percentage of the principal amount.

Interest Receivable

The amount of interest that has been earned but not yet received in cash or recorded by the recipient company.

Effective Interest Rate

The real rate of interest earned or paid on an investment, loan, or other financial product, accounting for the effects of compounding.