Obligations that are not expected to require the use of current assets or the creation of other current liabilities within one year or the normal operating cycle, if longer than a year, are called
A)other liabilities
B)current liabilities
C)long-term liabilities
D)contingent liabilities

Question

Quizplus · Accepted Answer

These obligations are called long-term liabilities, as they are not expected to be settled within a year or the normal operating cycle. Current liabilities are expected to be settled within a year or the normal operating cycle, while other liabilities may include things like deferred revenue or lease obligations that do not fit neatly into either category. Contingent liabilities are potential obligations that depend on the occurrence of a future event, such as a lawsuit or insurance claim.

Obligations That Are Not Expected to Require the Use of Current