Which of the following should be excluded from long-term liabilities? Obligations payable at some date beyond the operating cycle. Most pension obligations. Long-term liabilities that mature within the operating cycle and will be paid from a sinking fund. None of these answer choices are correct.

Question

Business

Terry Faulkner

25 April, 09:35

Which of the following should be excluded from long-term liabilities? Obligations payable at some date beyond the operating cycle. Most pension obligations. Long-term liabilities that mature within the operating cycle and will be paid from a sinking fund. None of these answer choices are correct.

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Answers (1)

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Eileen Moody · Answer 1

Long-term liabilities that mature within the operating cycle and will be paid from a sinking fund.

Explanation:

As we know that

The liabilities are classified into current liabilities and the long term liabilities.

The current liabilities are that liabilities that are payable within one year

while the long term liabilities are that liabilities that are payable or due after one year

And the operating cycle includes only days inventory outstanding and days sale outstanding but the liabilities will be paid from a sinking fund that reflects the current liability