Which of the following is considered a long-term liability? A) a paym

QUESTION

Which of the following is considered a long-term liability?

A) a payment obligation that is due in two years
B) a patent or trademark
C) merchandise that is being held for resale to customers
D) accounts payable
E) owners’ equity greater than $1 million

ANSWER

Answer: A
Explanation: A) Long-term liabilities are obligations in which payments are due in one year or more, such as notes payable and bonds payable.