One of the main reasons for separating liabilities into current and long-term is to
A) provide decision makers with information regarding currently maturing debts.
B) separate large and small debts.
C) separate capital into its component parts.
D) separate total equity into its two basic parts.

Question

Quizplus · Accepted Answer

Separating liabilities into current and long-term helps provide decision makers with information about debts that are due within the current operating cycle or year, allowing for better financial planning and analysis.

One of the Main Reasons for Separating Liabilities into Current