Long-term liabilities are usually associated with:
A)purchase of a building
B)purchase of equipment
C)payment of wages owed.
D)both A and B.

Question

Quizplus · Accepted Answer

Long-term liabilities typically refer to debts or financial obligations that last for more than one year. The purchase of a building or equipment generally involves a significant amount of money that a company may not be able to pay off in a year, so they resort to long-term financing options like loans or bonds. Payment of wages owed, on the other hand, is a short-term liability as it usually needs to be paid within a year. Hence, the best choice is D, as both purchase of a building and purchase of equipment are associated with long-term liabilities.

Long-Term Liabilities Are Usually Associated With