Question

question 11

costs associated with commitments or assets that extend beyond 1 year are called ________ expenses.

• operating
• long-term
• short-term
• variable

Explanation:

Analyze the question stem

Using the Long-Term Expenses knowledge point

The question asks for the term used to describe costs associated with commitments or assets that extend beyond 1 year.

Evaluate the options

Using the Long-Term Expenses knowledge point

• operating: These are ongoing, day-to-day costs to run a business, typically short-term.
• long-term: These refer to obligations, assets, or expenses that extend beyond a one-year horizon.
• short-term: These are expenses or obligations expected to be settled within one year.
• variable: These are costs that change in proportion to production volume, not defined by a time horizon.

Therefore, the correct term is "long-term".

Answer:

• operating
• long-term (Correct answer)
• short-term
• variable