Which one of the following is a current liability?
A)Portions of notes payable due beyond the next accounting period
B)Sales taxes paid on new equipment acquired
C)Estimated costs of hurricanes which might develop in the Caribbean during next hurricane season
D)Football tickets sold to customers for games in the coming season

Question

Quizplus · Accepted Answer

Football tickets sold to customers for games in the coming season are considered a current liability because the company has an obligation to provide a service (the football game) in the near future, typically within one year. This is recognized as unearned revenue or deferred revenue on the balance sheet until the service is performed.

Which One of the Following Is a Current Liability