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Commerce · Q246

Accounting

Graduate and Post Graduate · Commerce · question 246

Q246

Which one of the following statement is CORRECT about long term liabilities?

A.
These are due within one year
B.
These consist of all debts, payabke after 12 months
Answer
C.
In working capital, these are deducted from current assets
D.
All of the above

Answer: Option B

Solution

Answer: Option B
Solution:
Long term liabilities consist of all debts, payabke after 12 months. Long-term liabilities are obligations not due within the next 12 months or within the company's operating cycle if it is longer than one year.