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      Question

      Which of the following is not an example of a long-term

      liability?
      A Bonds payable Correct Answer Incorrect Answer
      B Mortgages payable Correct Answer Incorrect Answer
      C Accounts payable Correct Answer Incorrect Answer
      D Notes payable Correct Answer Incorrect Answer

      Solution

      Explanation: Long-term liabilities are debts that are due more than one year from the date of the financial statement. Accounts payable is a short-term liability.

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