Question

Which one of the following is a current liability?

Group of answer choices

debt payable to a mortgage company in nine months

estimated taxes just paid

amount due to a supplier in 18 months

loan payment due in 13 months

amount due from a customer in 30 days

Answer 1

Notes:

1. Current Liability: Liabilities which are payable within 12 months are classifies as current liability.

Solution:

Estimated Tax Just paid: this is an expenses because this is just paid so not classified in Current Liability so this is not a correct answer.

Amount due to a supplier in 18 months: This amount is due after the 12 months so this is not classified under current liability so this is not a correct answer.

Loan payment due in 13 months: This amount also due after the 12 months so this is not classified under current liability so this is not a correct answer.

Amount due from a customer in 30 Days: This is an amount due from a customer so this is an a current assets not a current liability

Debt Payable to a mortgage company in nine months: This amount is payable within nine months it means this should be classified as current liability.

Answer = Option 1 = debt payable to a mortgage company in nine months