When it comes to long-term liabilities, the key word is
A) security.
B) debt.
C) credit.
D) profit.
E) equity.

Question

Quizplus · Accepted Answer

Long-term liabilities take many different forms, but in the end, the key word is debt. Companies may raise money by borrowing it from commercial banks or other financial institutions in the form of lines of credit, short-term loans, or long-term loans. Many corporations acquire debt by borrowing money from pension funds, mutual funds, or life-insurance funds.

When It Comes to Long-Term Liabilities, the Key Word Is