The mortgage on Prudential Insurance's local facility will be paid off over the next 30 years. The majority of this mortgage would be classified on Prudential's balance sheet as a(n)
A)current asset.
B)current liability.
C)long-term asset.
D)long-term liability.
E)account payable.Christine's First Job

Question

Quizplus · Accepted Answer

The mortgage is a long-term liability as it will be paid off over the next 30 years. It is not a current liability as it is not due within the next year, and it is not a long-term asset as it does not generate income for the company. It is also not a current asset or account payable as it is not an asset that can be quickly converted to cash or a liability that is due soon.

The Mortgage on Prudential Insurance's Local Facility Will Be Paid