Multiple Choice QuestionDebts that will be repaid over a number of years, such as a lengthy bank loan or bond issues are called ______.Multiple choice question.accounts receivablelong-term liabilitiesmarketable securitiescurrent liabilities
Question
Multiple Choice QuestionDebts that will be repaid over a number of years, such as a lengthy bank loan or bond issues are called ______.Multiple choice question.accounts receivablelong-term liabilitiesmarketable securitiescurrent liabilities
Solution
The correct answer is "long-term liabilities".
Step by step explanation:
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Accounts receivable: This is money owed to a company by its debtors. It's not a debt the company owes, but rather a debt owed to it.
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Long-term liabilities: These are debts or obligations that are due over a longer term, typically over a year. This includes bank loans or bond issues that are not due for payment in the next 12 months.
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Marketable securities: These are liquid financial instruments that can be quickly converted into cash at a reasonable price. They are not debts.
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Current liabilities: These are debts or obligations that are due within a short term, typically within a year.
So, debts that will be repaid over a number of years, such as a lengthy bank loan or bond issues are called long-term liabilities.
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