For each statement listed below, state whether it is correct or not.
-Yard Mart Company owes $4,700.If Yard Mart uses assets listed in the current asset section of the balance sheet to pay off this debt next year, Yard Mart must report the $4,700 in the current liability section of its balance sheet.

Question

Quizplus · Accepted Answer

Current liabilities are obligations the company expects to pay within the next year, and since Yard Mart plans to use current assets to pay off the $4,700 debt next year, it should be classified as a current liability.

For Each Statement Listed Below, State Whether It Is Correct