Disadvantages of Using Current Liabilities as Opposed to Long-Term Debt

question 23

Multiple Choice

Disadvantages of using current liabilities as opposed to long-term debt include [blank].

• A)greater risk of illiquidity
• B)uncertainty of interest costs
• C)higher cash flow exposure
• D)both A and B

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Definitions:

O-toluic Acid

An aromatic carboxylic acid derivative of toluene with the carboxyl group in the ortho position relative to the methyl group.

Structure

The arrangement or organization of atoms within a molecule, defining its molecular geometry and chemical properties.

Trimethylbenzene

This is an aromatic hydrocarbon with three methyl groups attached to its benzene ring, often found in petroleum and used as a solvent or chemical intermediate.

Acceptable Name

A name for a chemical compound that conforms to the nomenclature rules established by the relevant scientific body, such as IUPAC, and is universally recognized.