Which of the following would most likely be classified as a current liability?
A) two-year note payable
B) bond payable
C) mortgage payable
D) unearned rent

Question

Quizplus · Accepted Answer

Unearned rent is a liability that arises when a tenant pays rent in advance. It is considered a current liability because it is expected to be earned within a year. The other options, such as a two-year note payable, bond payable, and mortgage payable, are long-term liabilities that do not need to be paid off within a year.

Which of the Following Would Most Likely Be Classified as a Current