All of the complying with statements regarding long-term liabilities are true except? Multiple an option Long-term liabilities include long-term note payable, vouch liabilities, lease liabilities, and bonds payable. Permanent liabilities can be reported on the balance sheet in a single total or in multiple categories. Legal responsibility that execute not have a fixed due date, yet are payable on demand, are reported as permanent liabilities. A single long-term liability have the right to be divided in between current and also noncurrent part on the balance sheet. Liabilities not expected to be paid within the longer of one year or the company\"s operating cycle space reported as permanent liabilities.

You are watching: All of the following statements regarding liabilities are true except

Liabilities that do not have actually a fixed due date, yet are payable top top demand, space reported as permanent liabilities.


As we know that

Balance sheet is classified into three varieties i.e assets, liabilities and the stockholder equity

The liabilities are more categorized into current liabilities and also long ax liabilities

In the case of long term legal responsibility they perform not contain a solved due date and also are payable on need basis and also the same is to it is in reported together a long term liabilities in the balance sheet

C. Liabilities that do not have a addressed due date, but are payable on demand, space reported as permanent liabilities.


The liabilities room the responsibility with regard come the amount the is borrowed by who from any kind of other human or gaue won institution. It is a obligation of a human being to return the borrowed amount within the prescribed time along with the interest. Its time period is more than one year

Based ~ above the offered options, the choice A, B and D space correct however option D is no correct together they have the specified day

Hence, the option C is exactly

Long ax liabilities.


This can be quickly or mostly be provided in providers and additionally firms. In most cases they are been tagged a non-current liability.

They are generally identified to be duties that are not been worked out for/paid turn off in the current year or audit period. Therefore, fan of this kind are not due within a year. Dept that this kind arrays from notes payable to bonds payable, likewise mortɡɑɡes and also are additionally seen as leases in a company settings.

See more: What Are Words For When No One Listens Anymore ? What Are Words For When No One

In as much as this is not good for a company\"s gaue won health, investors and creditors see how the firm is financed through this. Present obligations space seen come be more risky 보다 non-current debts due to the fact that they will should be paid sooner.

Leave a reply Cancel reply

Your email resolve will no be published. Required areas are significant *