On its most recent balance sheet date, Lancer Corp.has notes payable totalling $250,000 with the United Bank.These are 90-day notes, renewable for another 90-day period.These notes should be classified on the balance sheet of Lancer Corp.as:
A)current liabilities.
B)deferred charges.
C)long-term liabilities.
D)shareholders' equity.

Question

Quizplus · Accepted Answer

The notes payable are for a term of 90 days and are renewable for another 90-day period. Therefore, they are classified as current liabilities on the balance sheet.

On Its Most Recent Balance Sheet Date, Lancer Corp