Which of the following would be classified as a noncurrent liability on the balance sheet at December 31,Year 1?
A)An accounts payable due on January 30,Year 2
B)A notes payable due November 30,Year 2
C)A note receivable that matures on April 30,Year 3
D)A notes payable due January 15,Year 3

Question

Quizplus · Accepted Answer

Current liabilities are debts and obligations that will be paid,settled,or fulfilled within 12 months of the balance sheet date.Noncurrent (or long-term)liabilities do not meet the definition of current liabilities.A notes payable that is due January 15,Year 3 would be classified as a noncurrent liability on the balance sheet at December 31,Year 1 since it is due after 12 months of the balance sheet date.

Which of the Following Would Be Classified as a Noncurrent