Which is not a current liability?
A)Accounts payable due in 120 days.
B)Bank loan due in three years that is in default.
C)Bonds payable maturing in five years.
D)Certain held for trading liabilities.

Question

Quizplus · Accepted Answer

Accounts payable (A) is a current liability because it is due within one year. The bank loan due in three years that is in default (B) is also a current liability because it is in default and the creditor can demand payment within one year. Certain held for trading liabilities (D) are also current liabilities because they are expected to be settled within one year. However, bonds payable maturing in five years (C) are not current liabilities because they are due beyond one year from the balance sheet date.

Which Is Not a Current Liability