The long-term debts of a ﬁrm are:
A) Liabilities that come due within the next 12 months.
B) Liabilities that do not come due for at least 12 months.
C) Liabilities owed to the ﬁrm's suppliers.
D) Liabilities owed to the ﬁrm's shareholders.
E) Liabilities the ﬁrm expects to incur within the next 12 months.

Question

Quizplus · Accepted Answer

Long-term debts are liabilities that do not come due for at least 12 months. Option A refers to current (short-term) liabilities, while options C, D, and E are not related to long-term debts.

The Long-Term Debts of a ﬁRm Are