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

Question

Quizplus · Accepted Answer

Long-term debts are liabilities that are not due for at least 12 months from the reporting date. Choices A, C, D, and E are incorrect because they do not accurately describe long-term debts.

The Long-Term Debts of a Firm Are Liabilities