Asked by
Life Of Daniela
on Nov 13, 2024Verified
In the balance sheet mortgage notes payable are reported as
A) a current liability only.
B) a long-term liability only.
C) both a current and a long-term liability.
D) a current liability except for the reduction in principal amount.
Mortgage Notes Payable
A long-term note secured by a mortgage that pledges title to specific assets as security for a loan.
Current Liability
Financial obligations a company is required to settle within one year or within the normal operating cycle.
Long-term Liability
Long-term Liability is any financial obligation of a business that is due for a period exceeding one year, such as bonds payable, long-term loans, and lease obligations.
- Comprehend the classification and reporting of current and long-term liabilities on the balance sheet.
Verified Answer
HO
Learning Objectives
- Comprehend the classification and reporting of current and long-term liabilities on the balance sheet.