Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2016 balance sheet.
-An amount of money owed to a creditor on a note due August 15, 2024.
A)Current liability
B)Long-term liability

Question

Quizplus · Accepted Answer

The note is not due until August 15, 2024, which is more than one year after the balance sheet date of December 31, 2016. Therefore, it is classified as a long-term liability.

Identify the Classifications of the Following Accounts as Either Current