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

question 115

Multiple Choice

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

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Definitions:

Accounts Receivable

Amounts owed to a business by its customers for goods or services sold on credit.

Operations Section

The operations section is a part of a business plan or organizational structure detailing the daily activities, facilities, and equipment necessary to produce goods or services.

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by starting with net income and adjusting for changes in balance sheet accounts.

Depreciation Expenses

The systematic allocation of the cost of a tangible asset over its useful life.