All of the following are considered to be long-term liabilities for Parsons Company except
A)bonds issued this year (due in ten years).
B)the payment due in three years for a three-year lease signed this year.
C)the current year portion of deferred taxes.
D)the principal of a note payable signed this year but due in five years.

Question

Quizplus · Accepted Answer

Long-term liabilities are those obligations that are due more than one year from the balance sheet date. A) is a long-term liability because the bonds were issued and have a due date that is more than one year away. B) is also a long-term liability because even though the payment is due in three years, it was for a three-year lease signed this year. D) is a long-term liability because the note payable is due in five years. C) is not a long-term liability because it is the current portion of deferred taxes, which are taxes that are due within the next year. Therefore, the correct answer is C.

All of the Following Are Considered to Be Long-Term Liabilities