When creditors provide funds to a firm, which of the following is/are true?

Select one:

A. The firm must repay, usually with interest, in specific amounts at specific dates.

B. Long-term creditors require repayment from the borrower over a period of time that exceeds one year.

C. All of the above

D. One common form of long-term financing is bonds.

Brice Foods Group, a European food retailer that operates supermarkets in seven countries, engaged in the following transaction during 2013: purchased and received inventory costing 500 million on account from various suppliers. Indicate the effects of the transaction on the accounting equation.

Select one:

A. Liabilities + 500 million; Shareholders Equity + 500 million

B. Liabilities + 500 million; Shareholders Equity - 500 million

C. Assets + 500 million; Shareholders Equity + 500 million

D. Assets + 500 million; Liabilities + 500 million

Composite, Inc., a firm specializing in building materials, engaged in the following transaction during 2020: issued 2,000 shares of common stock for $7,500 million in cash. Indicate the effects of the transaction on the accounting equation.

Select one:

A. Liabilities +$7,500 million; Shareholders Equity -$7,500 million

B. Assets +$7,500 million ; Liabilities +$7,500 million

C. Liabilities +$7,500 million; Shareholders Equity +$7,500 million

D. Assets +$7,500 million ; Shareholders Equity +$7,500 million

Current liabilities

a.	are obligations that a firm expects to pay or discharge during the normal operating cycle of the firm, usually one year.
b.	include liabilities to merchandise suppliers, employees, and governmental units.
c.	include notes and bonds payable to the extent that they will require the use of current assets within the next year.
d.	include all of the above.