Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2014 balance sheet.
-Estimated warranty payable by June 30, 2015.
A)Current liability
B)Long-term liability

Question

Quizplus · Accepted Answer

Estimated warranty payable by June 30, 2015 is a current liability because it is expected to be settled within one year from the balance sheet date.

Identify the Classifications of the Following Accounts as Either Current