The duration of time that differentiates "short-term" from "long-term" accounting is that ____________.
A)long-term means more than six months
B)current means less than one year
C)current means less then three months
D)current just phases into long-term

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), current assets and liabilities are those that are expected to be used or settled within one year, while long-term assets and liabilities extend beyond that timeframe. Therefore, the duration that differentiates short-term from long-term accounting is one year.

The Duration of Time That Differentiates "Short-Term" from "Long-Term" Accounting