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Shelley Nelson
on Oct 28, 2024

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Which of the following liabilities is properly classified as a current liability?

A) currently maturing bonds payable that will be paid out of a fund accumulated for that purpose
B) short-term notes payable being refinanced with long-term notes
C) obligations that will be paid outside the operating cycle
D) obligations for goods and services that have entered the operating cycle

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle, necessitating the use of current assets or the creation of new current liabilities.

Operating Cycle

The period it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Bonds Payable

Long-term liabilities representing borrowed money that a company must repay to bondholders, typically with periodic interest payments.

  • Identify and classify current liabilities on a balance sheet.
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JE
Jessica EzellOct 31, 2024
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