Which of the following would be classified as a long-term liability on the balance sheet at December 31,2013?
A)Accounts payable,30-day account.
B)Notes payable,due November 2014.
C)Notes receivable,matures April 2015.
D)Mortgage payable,due January 2016.

Question

Quizplus · Accepted Answer

A long-term liability is a debt that is due more than one year from the date of the balance sheet. Only option D, mortgage payable, is due beyond December 31, 2014, and therefore qualifies as a long-term liability. Options A and C are both current liabilities since they are due within one year, and option B may be a long-term liability depending on when it was issued and when the fiscal year ends.

Which of the Following Would Be Classified as a Long-Term