Identify the Classifications of the Following Accounts as Either Current

question 151

Multiple Choice

Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2014 balance sheet.
-Estimated warranty payable by June 30, 2015.

• A)Current liability
• B)Long-term liability

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Definitions:

Maturational

Related to or involving the process of maturation or coming of age, involving the natural progression of physical or psychological growth and development.

Situational

Relating to or dependent upon a particular set of circumstances or context at a given time.

Actual

Real and existing in fact, not merely potential or theoretical.

Perceived

Recognized, seen, or interpreted by a person in a certain way, based on sensory input and subjective interpretation.