Current & Long-Term Liabilities: Definition & Characteristics


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question 1 of 3

What are liabilities?

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1. Which of the following statements is true regarding current liabilities?

2. Which of these is the best example of a current liability?

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About This Quiz & Worksheet

Businesses assess their health and success by tracking and analyzing their revenues, profits, losses, and liabilities. This quiz/worksheet combo helps you understand the definition of a liability and the differences between current and long-term liabilities.

Quiz & Worksheet Goals

In these assessments you'll be tested on the following:

  • Definition of a liability
  • Time span used to classify current liabilities
  • Examples of long-term liabilities
  • Costs of doing business
  • Definition of long-term liability

Skills Practiced

These assessments allow you to practice the following skills:

  • Interpreting information - verify that you can read information about business liabilities and interpret it correctly
  • Distinguishing differences - compare and contrast current and long-term liabilities
  • Knowledge application - use your knowledge to explain examples of current and long-term liabilities

Additional Learning

To learn more, review the accompanying lesson, Current & Long-Term Liabilities: Definition & Characteristics. This lesson covers the following objectives:

  • Understand the role of liabilities in business operations
  • Explain how long-term liabilities are tracked in business accounts
  • Cite typical examples of current liabilities for a small business
  • Describe the types of liabilities that fall under accounts payable