Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which type of loan most often involves long-term repayment over 30 years?

Short-term bank loan

Notes payable (due in 90 days)

Accounts payable

Mortgage loan

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Verified step by step guidance

Understand the concept of a mortgage loan: A mortgage loan is a type of long-term loan typically used to purchase real estate, where the repayment period often spans 15 to 30 years.

Compare the repayment terms of the options provided: Short-term bank loans, notes payable (due in 90 days), and accounts payable are all short-term liabilities, meaning they are typically due within a year or less.

Recognize that mortgage loans are distinct from short-term liabilities because they are structured for long-term repayment, often secured by the property being purchased.

Identify the key characteristic of a mortgage loan: It involves periodic payments (usually monthly) over an extended period, such as 30 years, which is significantly longer than the repayment terms of the other options listed.

Conclude that the correct answer is 'Mortgage loan' because it aligns with the description of a loan involving long-term repayment over 30 years.