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 for years 2018 to 2022 to a creditor as annual installment payments on a ten-year note, due June 30, 2022.
A)Current liability
B)Long-term liability

Question

Quizplus · Accepted Answer

Since the payments are due after one year from the balance sheet date, they are considered as long-term liabilities.

Identify the Classifications of the Following Accounts as Either Current