Barkatorium Pet Supplies established a line of credit with its local bank and used (borrowed) $95,000 against it to purchase its first year's inventory. Since it is required to repay the money before the end of its fiscal year, the company's accountant lists this liability with the current liabilities on the balance sheet.

Question

Quizplus · Accepted Answer

Liabilities (borrowed funds) that must be repaid within a year's time are listed as current liabilities on the firm's balance sheet.

Barkatorium Pet Supplies Established a Line of Credit with Its