Which of the following statements is true with respect to long-term liabilities?
A)They are obligations that will be satisfied within one year.
B)An account payable is a good example of a long-term liability because it is interest-bearing.
C)Long-term liabilities include bonds,other long-term liabilities,and deferred income taxes.
D)Accrued expenses are considered to be long-term liabilities.

Question

Quizplus · Accepted Answer

Long-term liabilities include obligations that will not be satisfied within one year, such as bonds payable, other long-term liabilities, and deferred income taxes. Accounts payable are generally short-term liabilities, and accrued expenses may be short-term or long-term depending on when they will be satisfied.

Which of the Following Statements Is True with Respect to Long-Term