Which of the following is not considered a current liability? A. Accounts Payable B. Unearned Revenue C. the component of a twenty-year note payable due in year 20 D. current portion of a noncurrent note payable
Which of the following is not considered a current liability? A. Accounts Payable B. Unearned Revenue C. the component of a twenty-year note payable due in year 20 D. current portion of a noncurrent note payable
Which of the following is not considered a current liability?
A. Accounts Payable
B. Unearned Revenue
C. the component of a twenty-year note payable due in year 20
D. current portion of a noncurrent note payable
Expert Solution & Answer
To determine
Concept introduction:
One the basis of period, liabilities can be divided into current liabilities and noncurrent liabilities. A liability which is payable within next accounting year is considered as short-termliability and all other liabilities are considered as long term or no current liabilities.
To choose:
The option that is not a current liability.
Answer to Problem 1MC
The Component of a twenty year note payable due in year 20
Explanation of Solution
Explanation for correct answer:
A liability which is payable within next accounting year is considered as short-term liabilityand all other liabilities are considered as long term or no current liabilities.The Component of a twenty year note payable due in year 20 is a Long Term liability. Hence the correct option is C.
Explanation for incorrect answers:
A. Accounts Payable is a Current Liability. Hence this option is incorrect.
B. Unearned Revenue is a Current Liability. Hence this option is incorrect.
D. Current portion of a noncurrent note payable is a current liability. Hence this option is incorrect.
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Which of the following is not considered a current liability?A. Accounts PayableB. Unearned RevenueC. the component of a twenty-year note payable due in year 20D. current portion of a noncurrent note payable
Which of the following will be classified as a current liability?
O a. Two-year noțes payable
O b. Unearned rent
Oc. Bonds payable
Od. Mortgage loan
Which of the following is most likely to be classified and reported as current liability?
a. Bond Payable
b. Unearned Rent
c. Mortgage Payable
d. Two-year Note Payable
e. None of the above.
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