The long-term debts of a firm are liabilities:
A)owed to the firm's shareholders.
B)that do not come due for at least 12 months.
C)owed to the firm's suppliers.
D)that come due within the next 12 months.
E)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, making choice B the best answer. Choices A, C, D, and E are all incorrect because long-term debts are not owed to the firm's shareholders, suppliers, or repayable in the next 12 months or expected to be incurred within the next 12 months.

The Long-Term Debts of a Firm Are Liabilities