Which of the Following Is Not Normally Regarded as a Current

question 5

Multiple Choice

Which of the following is not normally regarded as a current liability?

• A) Accounts payable
• B) Mortgage
• C) GST collected
• D) Bank overdraft

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Definitions:

Model Business Corporation Act

A uniform set of laws that is designed to regulate the formation, operation, and dissolution of corporations, adopted by many U.S. states to facilitate business.

Close Corporation

A corporation with a limited number of shareholders and no public shares, often operated by a few individuals with closely aligned interests.

Charter of the Corporation

A legal document issued by a governmental authority that establishes a corporation and outlines its basic terms of operation, rights, and responsibilities.

Initial Directors

Initial directors are the first members of a corporation's board of directors, appointed at the time of incorporation to serve until the first shareholders' meeting.