Question

100 POINTS HELP Which expression best describes a non-current liability?

A. Long-term
C. Has dramatic fluctuations
B. Short-term
D. Funds day-to-day operations
920 90

Answer 1

A

Explanation:

A non-current liability is a type of liability that is not due for payment within the next 12 months. Therefore, the expression that best describes a non-current liability is A. Long-term.

Option B, Short-term, describes current liabilities, which are due for payment within the next 12 months.

Option C, Has dramatic fluctuations, does not describe a specific type of liability.

Option D, Funds day-to-day operations, describes working capital, which is the amount of money a company has available to fund its day-to-day operations and is not a type of liability.

Therefore, the correct answer is A. Long-term.

Answer 2

Explanation:

A non-current liability is a debt or obligation that is not due within the next 12 months or the current operating cycle, whichever is longer. Therefore, option A "Long-term" best describes a non-current liability.

Option B "Short-term" describes current liabilities, which are obligations that are due within the next 12 months or the current operating cycle.

Option C "Has dramatic fluctuations" does not necessarily describe a non-current liability. Liabilities can have fluctuations in their balances regardless of whether they are current or non-current.

Option D "Funds day-to-day operations" describes current liabilities or working capital, which are used to finance a company's day-to-day operations.