Question

the portion of long term debt of a company that is not due within the reporting period is classified as

a) current liability
b) fixed liability
c) long term liability
d) contingent liability

ops
1) 3 & 4 only
2) none
3) 3 only
4) 1&4 only
5) 2 only​

Answer 1

Answer:

contingent liability or

Explanation:

not due within the reporting period

Answer 2

Answer:

The correct option is 3 i.e., 3 only (c. Long term liability)

Explanation:

The amount that a business owes to persons other than the proprietor is called its  liability. In other words, claims of outsiders against the business are called 'Liabilities'

"Liabilities are debts, they are amounts owed to creditors."

1. Non-Current Liabilities: Non-Current liabilities are those liabilities which are payable in long period or after one year or is not due within on accounting period i.e. reporting period.

2. Current Liabilities: Current liabilities or short term liabilities are those liabilities which are payable within short period or within one year or due within one accounting period.

3. Contingent liabilities: Contingent liabilities are not actual liabilities when they are recorded, but in future these liabilities may become actual liabilities. Future event will decide whether they will paid or not.

So, the portion of long term debt (liability) of a company that is not due within the reporting period is classified as Long Term Liability.

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