Which of the Following Represents a Liability

question 66

Multiple Choice

Which of the following represents a liability?

• A) The obligation to pay for goods that a company expects to order from suppliers next year.
• B) The obligation to provide goods that customers have ordered and paid for during the current year.
• C) The obligation to pay interest on a five-year note payable that was issued the last day of the current year.
• D) The obligation to distribute shares of a company's own common stock next year as a result of a stock dividend declared near the end of the current year.

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Definitions:

Investment Account

A financial account that holds securities, stocks, bonds, and other investments for a long-term goal.

Dividends

A portion of a company’s earnings distributed to shareholders, usually in the form of cash or additional shares.

Media Globalization

The worldwide integration and exchange of media content and communication technologies, fostering global connectivity and cultural exchange.

Indigenous Cultures

The customs, social practices, and ways of life of native peoples who have traditional ties to particular territories.