An Account That Would Be Classified as a Current Liability

question 39

Multiple Choice

An account that would be classified as a current liability is

• A) Dividends payable in stock
• B) Accounts payable - debit balance
• C) Reserve for possible losses on purchase commitments
• D) Excess of replacement cost over LIFO cost of basic inventory temporarily liquidated

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Definitions:

Hydrogen Ions

Positively charged ions (H+) that are formed when hydrogen atoms lose or share their electron.

Aerobic Respiration

A method where cells generate energy with the use of oxygen by decomposing nutrients in the mitochondria through an extended series of steps, resulting in approximately 36 ATP.

Glucose

A basic form of sugar vital for energy production in living beings and a key ingredient in numerous carbohydrates.

Aerobic Organisms

Organisms that require oxygen for their metabolic processes.