Question

Long-term liabilities include

a. obligations not expected to be liquidated within the operating cycle
b. obligations payable at some date beyond the operating cycle
c. deferred income taxes and most lease obligations
d. all the above

Answer 1

Long-term liabilities include obligations payable at some date beyond the operating cycle, deferred income taxes, and most lease obligations.

Step-by-step explanation:

Long-term liabilities include obligations payable at some date beyond the operating cycle. Examples of long-term liabilities include bonds payable, mortgages payable, and long-term notes payable. These are obligations that are expected to be repaid or settled over a period longer than the operating cycle.

In addition to obligations payable beyond the operating cycle, long-term liabilities can also include deferred income taxes and most lease obligations. Deferred income taxes refer to taxes that will be paid in the future due to temporary differences between book and tax accounting, while lease obligations represent long-term rental agreements for assets.

Therefore, the correct answer is option (d) all the above.