just have to give the final answer Question1 1 pts Which of the following liabil
ID: 2554072 • Letter: J
Question
just have to give the final answer
Question1 1 pts Which of the following liabilities is often referred to as "free debt" because it rarely carries any interest if paid within a specified period of time? Working capital loan Accounts payable Line of credit None of the other answers is correct-all liabilities carry an interest rate Question 2 1 pts A short-term liability used by a company to finance the purchase of current assets and that is often secured by accounts receivable or inventory is referred to as afn) accounts payable. accounts receivable. mortgage line of credit.Explanation / Answer
Notes:-
1. Accounts Payable are the liability if they paid at time, no interest has to be paid on them.
2. Line of credit is a finance which is provided on inventory and accounts receivables for short term needs.
3. Liability has to be pay in every condition. No discretion can avoid the obligation so it is not a characteristics of liability.
4. All are payable with in one year or on demand, so all are current liabilities
5. Company is liable to pay this amount to goverment.
6. Current Liabilities would not effect collection of account receivable in any course.
7. Prepaid expenses are assets not liablity.
8. goodwill, patent trademark are intangible assets.
9. Goodwill is a hyphothetical assets hense cannot be mortgage collateral to finance from bank.
10. One party to contract has accomplished their part but other not, so it is a partial executed contract.
Hope will be helpful to you.
Question Correct Answer 1 Accounts Payable 2 Line of Credit 3 There is little discretion to avoid obligation 4 None of the other all would be classified as current liabilities 5 A Liability 6 To determine how quickly Acc Rec. are collected 7 Prepaid Expenses 8 Mortgage 9 The company's goodwill can be used as goodwill 10 Partially executed ContractRelated Questions
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