Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2016 balance sheet.
-An amount of money owed to the federal government based on the company's annual income.
A)Current liability
B)Long-term liability

Question

Quizplus · Accepted Answer

The amount owed to the federal government based on the company's annual income is typically paid within a year, making it a current liability.

Identify the Classifications of the Following Accounts as Either Current