Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2014 balance sheet.
-An amount of money owed for years 2016 to 2020 to a creditor as annual installment payments on a ten-year note, due June 30, 2020.
A)Current liability
B)Long-term liability

Question

Quizplus · Accepted Answer

The amount owed for years 2016 to 2020 is a long-term liability as it is due beyond the current year (2014) and will be paid in installments over several years until 2020.

Identify the Classifications of the Following Accounts as Either Current