Question

All of the following statements regarding long-term liabilities are true except?
A. Liabilities not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities.
B. Long-term liabilities include long-term notes payable, warranty liabilities, lease liabilities, and bonds payable.
C. Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.
D. Long-term liabilities can be reported on the balance sheet in a single total or in multiple categories.

Answer 1

Answer:

C. Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.

Explanation:

The liabilities are the responsibility with regard to the amount that is borrowed by someone from any other person or financial institution. It is a responsibility of a person to return the borrowed amount within the prescribed time along with the interest. Its time period is more than one year

Based on the given options, the option A, B and D are correct but option D is not correct as they have the specified date

Hence, the option C is correct