Which of the following would most likely be classified as a current liability?
A) two-year notes payable
B) bonds payable
C) mortgage payable
D) unearned rent

Question

Quizplus · Accepted Answer

Unearned rent is a liability that arises when a tenant pays rent in advance. It is a current liability because the rent will be earned, or recognized as revenue, within the next year. The other options (two-year notes payable, bonds payable, and mortgage payable) are all long-term liabilities because they have a repayment period of more than a year.

Which of the Following Would Most Likely Be Classified as a Current