An example of a current liability is
A)unearned revenue.
B)accumulated depreciation.
C)long-term note payable.
D)interest expense.
E)retained earnings.

Question

Quizplus · Accepted Answer

Unearned revenue is a liability that arises when a company receives payment from a customer for goods or services that it has not yet provided. It is considered a current liability because the company is obligated to provide the goods or services within a year. Accumulated depreciation is a contra-asset account and not a liability. Long-term note payable is a long-term liability. Interest expense is an expense and not a liability. Retained earnings is an equity account and not a liability.

An Example of a Current Liability Is