Question

Which of the following defines long-term liabilities?

A) Debts due within a year
B) Assets held for investment
C) Debts payable beyond a year
D) Current liabilities

Answer 1

Long-term liabilities are debts that are payable beyond a year. Examples include mortgage loans, long-term bonds, and long-term notes payable.

Step-by-step explanation:

Long-term liabilities refer to debts that are payable beyond a year. These liabilities are not due within a year like current liabilities. A common example of a long-term liability is a mortgage loan which typically has a repayment period of 15 or 30 years. Other examples of long-term liabilities include long-term bonds and long-term notes payable.