BrainTok
ENESIT
A topic in Accounting

Intermediate Accounting – Liabilities and Equity quizzes

How companies account for debts, provisions and owners’ equity, from issuing bonds to distributing profits.

1 quiz 28 questions

Quizzes in this topic

Try a question

From Intermediate Accounting – Liabilities and Equity: Current Liabilities · Definition and Classification

A whisky distiller's operating cycle is four years. Its trade payables are due in 14 months. How are they classified?

  1. As noncurrent liabilities
  2. Split by the twelve-month cutoff
  3. As current liabilities
Show the answer

Answer: As current liabilities

Trade payables are part of working capital used in the normal operating cycle, so IAS 1 classifies them as current even when settled more than twelve months after the reporting date.

A few questions at a time, before your apps

BrainTok asks a few questions from quizzes like these before the apps you choose open, so your screen time turns into learning. For iPhone.

Join the beta

More Accounting topics