Among the short-term obligations of Lance Company as of December 31, the balance sheet date, are notes payable totaling $250,000 with the Madison National Bank.These are 90-day notes, renewable for another 90-day period.These notes should be classified on the balance sheet of Lance Company as
A)current liabilities.
B)deferred charges.
C)long-term liabilities.
D)intermediate debt.

Question

Quizplus · Accepted Answer

The notes payable totaling $250,000 with the Madison National Bank are short-term obligations that are due within the next 90 days. Therefore, they should be classified as current liabilities on the balance sheet of Lance Company.

Among the Short-Term Obligations of Lance Company as of December