Which of the following accounts is not classified as a current liability?
A) Note payable, due in three (3) years
B) Taxes payable
C) Salaries payable
D) Accounts payable

Question

Quizplus · Accepted Answer

Current liabilities are those expected to be settled within one year or the normal operating cycle of the business, whichever is longer. A note payable, due in three years, is not expected to be settled within the next year and is therefore not classified as a current liability. The other options are all examples of current liabilities.

Which of the Following Accounts Is Not Classified as a Current