Bert Yelverton has a 20-year mortgage on the building where his office is located.The mortgage is an example of which of the following?
A) a long-term liability
B) a current asset
C) owners' equity
D) a current liability

Question

Quizplus · Accepted Answer

A 20-year mortgage is a long-term liability as it has a maturity period that is greater than one year. It represents the amount of money Bert owes to the lender for a long period of time. Current assets are those that can be converted into cash within one year, owners' equity is the residual interest in the assets of the company after liabilities are paid, and a current liability is a debt that is due within one year.

Bert Yelverton Has a 20-Year Mortgage on the Building Where