Multiple choice general knowledge

Which of the following is an example of Long Term Liability?

  1. Bank Loan due to be repaid in three years time

  2. Bank Overdraft

  3. Accruals for year-end costs

  4. Dividends payable
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A Correct answer
Explanation

Long-term liabilities are obligations due after more than one year. A bank loan repayable in three years is a classic example of long-term debt financing. The other options (bank overdraft, accruals, dividends payable) are typically current or short-term liabilities due within 12 months.

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