Obligations under leases should be disclosed as
A) all current liabilities.
B) all noncurrent liabilities.
C) the current portion in current liabilities and the remainder in noncurrent liabilities.
D) deferred credits.

Question

Quizplus · Accepted Answer

Obligations under leases should be disclosed as a current liability if the liability is payable within one year, and as noncurrent if the liability is payable after one year or later. Therefore, the current portion should be disclosed in current liabilities, and the remainder should be disclosed in noncurrent liabilities.

Obligations Under Leases Should Be Disclosed as