Accounting Multiple Choice Question – 7 February 2019

When preparing a firm’s balance sheet, which of the following should be classified as a long-term liability?

Select ONE answer:

1. An amount payable by the firm within six months of the date of the balance sheet
2. An amount payable by the firm within nine months of the date of the balance sheet
3. An amount payable by the firm after more than one year from the balance sheet date
4. None of the above

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3
1 – would be treated as a current liability
2 – would be treated as a current liability

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