Which of the following accounts is not considered a current liability? a.Treasury Stock b. Salary Payable...

Which of the following accounts is not considered a current liability?

a.Treasury Stock

b. Salary Payable

c.Sales Tax Payable

d. Interest Payable

Solutions

Expert Solution

1.) Option (a) Treasury Stock is correct answer

Current Liability: These are debts that are due within a year or within the normal functioning cycle. Some of the Current liabilities are

a.) Salary Payable : It is the money which is due to be paid to employees within 1 month.

b.) Sales Taxes Payable: It is a kind of tax that is owed to government and paid within a month or quarter.

c.) Interest Payable : Generally interest is payable monthly, quarterly, half yearly. So it is classified as Current liability

d.) Treasury Stock : The treasury stock reissue or retirement is based on the market life cycle and intrinsic value of the share in market. So we cannot predict correctly when it will be redeemed or retired. So based on these facts it is classified as non current liability

ekkarill92 answered 1 year ago

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