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Which of the following is a long-term liability?

-Property, plant and equipment that will be used in operations over 4 years.

-Bonds payable that are due in 5 years.

-A patent that gives exclusive rights over 7 years.

-Land that will be sold in 3 months.

User Krotton
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1 Answer

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Final answer:

Bonds payable that are due in 5 years is the correct answer as this reflects a long-term liability, which is an obligation due more than one year in the future.

Step-by-step explanation:

The student asked which of the following is a long-term liability:

  • Property, plant and equipment that will be used in operations over 4 years.
  • Bonds payable that are due in 5 years.
  • A patent that gives exclusive rights over 7 years.
  • Land that will be sold in 3 months.

Among these options, the bonds payable that are due in 5 years represent a long-term liability. Long-term liabilities are obligations that are due more than one year in the future. In contrast, property, plant, and equipment are considered long-term assets, a patent is an intangible asset, and land to be sold shortly would be classified as either a current asset or long-term investment depending on the business's intention.

User Edl
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