Question

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

Answer 1

Answer:

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

Explanation:

As we know that

Balance sheet is classified into three types i.e assets, liabilities and the stockholder equity      

The liabilities are further categorized into current liabilities and long term liabilities

In the case of long term liabilities they do not contain a fixed due date and are payable on demand basis and the same is to be reported as a long term liabilities in the balance sheet