BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
banks and bondholders
|
|
banks and stockholders
|
|
stockholders and bondholders
|
|
all long-term lenders
|
Detailed explanation-1: -Debts to be paid more than one year from now are claims against the firm’s assets: in other words, they are long-term liabilities.
Detailed explanation-2: -Understanding Long-Term Debt Long-term debt is debt that matures in more than one year.
Detailed explanation-3: -Noncurrent Liabilities – Liabilities that do not fall due (paid, recognized as revenue) within one year after year-end date. Examples include Loans Payable, Mortgage Payable, etc. Noncurrent assets and noncurrent liabilities are also called long term assets and long term liabilities.
Detailed explanation-4: -Short-term debt, also called current liabilities, is a firm’s financial obligations that are expected to be paid off within a year. Common types of short-term debt include short-term bank loans, accounts payable, wages, lease payments, and income taxes payable.