Liabilities That Will Be Paid Over a Period of More

question 36

Multiple Choice

Liabilities that will be paid over a period of more than one year are ________.

• A) long-term assets
• B) long-term liabilities
• C) equity
• D) None of the above.

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Definitions:

Net Income

After deducting taxes and expenses from its revenues, the resultant profit of a company.

Dividends

Cash payouts from a firm to its equity holders, usually derived from the company's financial gains.

Common Stock

Shares entitling the holder to dividends that fluctuate in amount and the right to vote on the company's policy and corporate decisions.