A delivery company is creating a balance sheet. Which of the following would most likely be considered a short-term liability on this balance sheet?
A)revenue received for the delivery of items that have not yet been delivered
B)the depreciation over the last year in the value of the vehicles owned by the company
C)a loan which must be paid back in two years' time
D)prepaid rent on the offices occupied by the company

Question

Quizplus · Accepted Answer

Revenue received for the delivery of items that have not yet been delivered is considered a short-term liability because the delivery company has not yet fulfilled its obligation to deliver the items, and therefore owes the customer the service.

A Delivery Company Is Creating a Balance Sheet