Wilson's Clothing has a loan payable to a bank which is due 18 months from now. How is this loan classified on the firm's financial statements?

Question

Quizplus · Accepted Answer

The loan payable to the bank is a long-term debt, as it is not due within the next 12 months. It would not be classified as a fixed asset, expense or equity, and it is not a current liability as it is not due in the short-term.

Wilson's Clothing Has a Loan Payable to a Bank Which