Question

Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called

Answer 1

Non - Current or Long term liabilities

Step-by-step explanation:

According to the Conceptual Framework, Liabilities are present obligation of an entity that arise as a result of past events from which cash outflows are expected.

Liabilities of a long term nature usually exceeding period of 12 months are called Non- Current or Long term Liabilities

Thus, Obligations to suppliers of merchandise that bear interest and are for a longer term than open accounts are called Long term liabilities