Which of the following would most likely be classified as a current liability? A. Mortgage payable...

Which of the following would most likely be classified as a current liability?

A. Mortgage payable

B. Portion of long-term debt due within one year

C. Two-Year notes payable

D. Bonds payable

Solutions

Expert Solution

Answer is Option B. Portion of long-term debt due within one year

The amount of principal portion payable within one year from date of balance sheet will falls under the head current liabilities. For example a company has a loan of 100000 out of which 20000 will be the principal due within one year, then 20000 will be shown under the head current liabilities and 80000 will be shown under long term liabilities.

ekkarill92 answered 1 year ago

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