When preparing the balance sheet for Papago Co.for December 31,2018,which item would not be classified as a current liability?
A)Note payable due March 1,2020
B)Accounts payable
C)Income taxes due on September 15,2019
D)The current portion of a 30-year mortgage

Question

Quizplus · Accepted Answer

Current liabilities are short-term obligations that will be paid with current assets within the current operating cycle or one year,whichever is longer.The accounts payable,the current portion of a 30-year mortgage,and income taxes are all current liabilities.Only the note payable,which is not due within the year,will be paid outside of the current operating cycle or one year.

When Preparing the Balance Sheet for Papago Co