Match the following items with the appropriate designation (Current liability, Long-term liability, or Not a liability).
-Payment of a 30-year term loan due next year.(The company's operating cycle is 2 months.)
A)Long-term liability
B)Not a liability
C)Current liability

Question

Quizplus · Accepted Answer

The loan is due next year, which is within the company's operating cycle of 2 months. Therefore, it is a current liability.

Match the Following Items with the Appropriate Designation (Current Liability