Asked by Diego Dulanto on Jun 28, 2024
Verified
Long-term liabilities are reported in a separate section of the balance sheet immediately following current liabilities.
Long-Term Liabilities
Financial obligations of a business that are due for repayment beyond the current fiscal year, including bonds payable, long-term loans, and lease obligations.
Current Liabilities
Financial obligations that a company is expected to pay within one year, including accounts payable, short-term loans, and other similar debts.
- Comprehend the basic concepts of issuing bonds, redeeming them, and their influence on a firm's financial stability and credit rating.
Verified Answer
DN
Donia NimehJul 01, 2024
Final Answer :
True
Explanation :
Long-term liabilities are reported separately from current liabilities on the balance sheet. Current liabilities are due within one year while long-term liabilities are due after one year.
Learning Objectives
- Comprehend the basic concepts of issuing bonds, redeeming them, and their influence on a firm's financial stability and credit rating.