A long-term liability is one that the company:
A)has owed for over one year.
B)has owed for over five years.
C)will not pay off for at least over one year.
D)will not pay off for at least over five years.

Question

Quizplus · Accepted Answer

A long-term liability is a debt or obligation that a company will not pay off within the current accounting year. This is typically considered to be a period of at least one year. Therefore, option C, which states that the liability will not be paid off for at least one year, is the most accurate choice. Options A and B are not necessarily incorrect, as they both involve a duration of over one year, but they do not specify that the liability will not be paid off within the current accounting year. Option D, which involves a duration of over five years, is too specific and does not necessarily apply to all long-term liabilities.

A Long-Term Liability Is One That the Company