QuestionJuly 14, 2025

Which of the following items is most likely a short-term liability? A. Bonds payable B. Finance lease covering 30-year term C. Deferred income taxes D. Accounts payable

Which of the following items is most likely a short-term liability? A. Bonds payable B. Finance lease covering 30-year term C. Deferred income taxes D. Accounts payable
Which of the following items is most likely a short-term liability?
A. Bonds payable
B. Finance lease covering 30-year term
C. Deferred income taxes
D. Accounts payable

Solution
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Answer

D. Accounts payable Explanation 1. Identify Short-term Liabilities Short-term liabilities are obligations due within one year. 2. Analyze Each Option A. Bonds payable - Typically long-term. B. Finance lease covering 30-year term - Long-term. C. Deferred income taxes - Often long-term. D. Accounts payable - Due within a short period, usually less than a year.

Explanation

1. Identify Short-term Liabilities<br /> Short-term liabilities are obligations due within one year.<br /><br />2. Analyze Each Option<br /> A. Bonds payable - Typically long-term.<br /> B. Finance lease covering 30-year term - Long-term.<br /> C. Deferred income taxes - Often long-term.<br /> D. Accounts payable - Due within a short period, usually less than a year.
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