All of the following are considered to be long-term liabilities for Parsons Company except:
A) Bonds issued this year (due in 10 years).
B) The third year payments for a three-year lease signed this year.
C) The current year portion of Deferred taxes.
D) The principal of a note payable signed this year, but due in five years.

Question

Quizplus · Accepted Answer

Bonds issued this year, a three-year lease payment, and a note payable due in five years are all considered long-term liabilities as they have a maturity greater than one year. However, the current year portion of deferred taxes would be considered a current liability as it will be paid off within the next year.

All of the Following Are Considered to Be Long-Term Liabilities