Which of the following accounts are normally reported as long-term liabilities on a classified balance sheet?
A)Notes payable due in five years and bonds payable
B)Interest payable and mortgage payable
C)Income taxes payable and salaries payable
D)Capital stock and accounts payable

Question

Quizplus · Accepted Answer

Notes payable due in five years and bonds payable are both examples of long-term liabilities because they have extended repayment schedules that exceed one year. Interest payable and mortgage payable, as well as income taxes payable and salaries payable, are typically reported as current liabilities because they are due within a year. Capital stock and accounts payable are not liabilities; capital stock is reported in the stockholders' equity section and accounts payable is a current liability.

Which of the Following Accounts Are Normally Reported as Long-Term