In 2007, Alca Co. issued a long-term note payable that would come due on May 15, 2011. On its December 31, 2010 balance sheet, this note should be classified as a(an)
A) long-term liability.
B) short-term liability.
C) intangible asset.
D) long-term investment.
E) expense.

Question

Quizplus · Accepted Answer

Since the note is due within the next year (from December 31, 2010, to May 15, 2011), it should be classified as a short-term liability on the balance sheet.