Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2014 balance sheet.
-An amount of money owed in 2015 to a creditor as an annual installment payment on a ten-year note, due June 30, 2020.
A)Current liability
B)Long-term liability

Question

Quizplus · Accepted Answer

The installment payment due in 2015 is a current liability because it is due within one year from the balance sheet date.

Identify the Classifications of the Following Accounts as Either Current