Company T's operating cycle is approximately 2 years long. Company T's note payable maturing in 15 months should be classified as a long-term liability.

Name: Company T's operating cycle is approximately 2 years long. Company T's note payable maturing in 15 months should be classified as a long-term liability.
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Question

Quizplus · Accepted Answer

A note payable maturing in 15 months is a short-term liability as it will be paid off within Company T's operating cycle.

Company T's Operating Cycle Is Approximately 2 Years Long