Which of the following is the equation form of long-term liabilities?
A) cash + marketable securities + accounts receivable + prepaid expenses + inventory
B) cash + marketable securities + accounts receivable − prepaid expenses + inventory
C) investments + fixed assets − accumulated depreciation + intangible assets
D) notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt
E) long-term debt + pension fund liabilities + long-term lease obligations

Question

Quizplus · Accepted Answer

Long-term liabilities are financial obligations that are due after one year or longer from the balance sheet date. Long-term debt, pension fund liabilities, and long-term lease obligations are all examples of long-term liabilities. Therefore, option E is the equation form of long-term liabilities.

Which of the Following Is the Equation Form of Long-Term