Questions: Multiple Choice Question Current liabilities operations, including short-term notes payable and dividends payable are categorized as: - unrelated to - recognized in - related to - from

Multiple Choice Question
Current liabilities operations, including short-term notes payable and dividends payable are categorized as:
- unrelated to
- recognized in
- related to
- from
Transcript text: learning.mheducation.com C. McGraw-Hill Connect Question Mode: Mul Me 7 of 53 Concepts completed IIII $\square$ Multiple Choice Question Current liabilities $\qquad$ operations, including short-term notes payable and dividends payable are categorized as financing activities. unrelated to recognized in related to from Need help? Review these concept resources. Read About the Concept Rate your confidence to submit your answer. High Mediam Low O 2024 McGraw Hill All Rights Reserved. Privacy Center Terms of Use
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Solution

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The answer is the third one: related to.

Explanation for each option:

  1. Unrelated to: This option is incorrect because current liabilities, such as short-term notes payable and dividends payable, are indeed related to financing activities. They represent obligations that arise from financing the company's operations.

  2. Recognized in: This option is incorrect because it does not accurately describe the relationship between current liabilities and financing activities. "Recognized in" is not a term typically used to describe this relationship.

  3. Related to: This option is correct because current liabilities, including short-term notes payable and dividends payable, are directly related to financing activities. These liabilities are part of the company's financial obligations that need to be managed as part of its financing strategy.

  4. From: This option is incorrect because it does not clearly describe the relationship between current liabilities and financing activities. "From" is not a suitable term to describe this connection.

In summary, current liabilities are related to financing activities as they represent financial obligations that the company needs to manage as part of its overall financing strategy.

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