Identify the Classifications of the Following Accounts as Either Current

question 195

Multiple Choice

Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2014 balance sheet.
-An amount of money owed in 2015 to a creditor as an annual installment payment on a ten-year note, due June 30, 2020.

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

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Definitions:

Legal Offer

A proposal by one party to another intended to create a legally binding agreement upon acceptance.

Transformation Processes

The operations or activities that convert inputs into outputs, adding value in manufacturing or service provision.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization.

Quality

How well a good or service meets or exceeds customers’ expectations, or the degree to which a product conforms to established tolerance standards.