MBA 700 Week 5 (Ch. 13 & 14) Questions And Answers - 100% Correct

1. Social Science 2. Economics 3. Finance 1. Given a choice, most companies would prefer to report a liability as long-term rather than current because: A. It may cause the firm to appear less risky to investors and creditors. B. It may cause the company to appear more stable, commanding a higher stock price for new stocklistings. C. It may reduce interest rates on borrowing. D. All of the other answer choices are correct.: D. All of the other answer choices are correct. 2. Which of the following is not a current liability? A. Accounts payable. B. Current portion of long-term debt. C. Sales tax payable. D. A note payable due in 2 years.: D. A note payable due in 2 years. 3. Which of the following is not a characteristic of a liability? A. It arises from present obligations to other entities. B. It represents a probable, future sacrifice of economic benefits. C. It results from past transactions or events. D. It must be payable in cash.: CONTINUES...