Soru
Which of the following statements BEST describes the difference between current and long-term liabilities? C A. Current liabilities are debts that must be paid within a year,long-term liabilities do not. B. Current liabilities are those which will cost less in debt interest than long-term liabilities. C. Current liabilities are debts that need to be paid within a pay cycle, whereas long-term liabilities do not. D. Current liabilities are debts on current assets whereas long-term liabilities are debts on fixed and intangible assets. E. Current liabilities are debts on tangible assets whereas long-term liabilities are debts on intangible assets.
Çözüm
4.5
(210 Oylar)
Umut
Elit · 8 yıl öğretmeni
Uzman doğrulaması
Cevap
A
Daha Fazla
## Step 1The problem is asking us to identify the statement that best describes the difference between current and long-term liabilities. ## Step 2Current liabilities are obligations that a company needs to settle within one year or within its operating cycle, whichever is longer. These include accounts payable, short-term loans, and other similar obligations.## Step 3Long-term liabilities, on the other hand, are obligations that extend beyond one year. These include bonds payable, long-term loans, and other similar obligations.## Step 4By comparing the definitions of current and long-term liabilities, we can see that the statement that best describes the difference between them is that current liabilities are debts that must be paid within a year, while long-term liabilities do not.