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Which of the liabilities is often referred to as free debt

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Problem 1: Which of the following liabilities is often referred to as "free debt" because it rarely carries any interest if paid within a specified period of time?

A) Line of credit.

B) Working capital loan.

C) Accounts payable.

D) None of the above-all current liabilities carry an interest rate.

Problem 2: For which of the following reasons would a user examine the current liabilities?

A) To determine how quickly accounts receivable are collected.

B) To determine how much cash will be required to meet obligations in the short term.

C) To determine how much cash will be required to meet obligations in the long-term.

D) To evaluate company performance.

Reference no: EM132953410

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