Which of the following accounts are normally reported as current liabilities on a classified balance sheet?
A)Accounts payable and bonds payable
B)Interest payable and mortgage payable
C)Income taxes payable and salaries payable
D)Capital stock and accounts payable

Question

Quizplus · Accepted Answer

Current liabilities are obligations that a company expects to pay within one year or within the operating cycle of the business. Income taxes payable and salaries payable are examples of current liabilities that are typically reported on a classified balance sheet. Accounts payable and bonds payable may also be reported as current liabilities if they are due within one year. However, interest payable and mortgage payable are long-term liabilities and would be reported under the non-current liabilities section of the balance sheet. Capital stock is an equity account and would not be reported as a liability.

Which of the Following Accounts Are Normally Reported as Current