Identify the Classifications of the Following Accounts as Either Current

question 129

Multiple Choice

Identify the classifications of the following accounts as either current or long-term liabilities for the December 31, 2016 balance sheet.
-An amount of money owed for years 2018 to 2022 to a creditor as annual installment payments on a ten-year note, due June 30, 2022.

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

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Definitions:

Intrapreneurship

The practice of fostering an entrepreneurial spirit within an existing company, encouraging employees to pursue innovative projects.

Profitable New Products

Goods or services recently introduced to the market that generate earnings exceeding their cost of production.

Larger Organisation

An organization that is significant in size, possibly with multiple departments, a wide range of functions, and a large number of employees.

Minority Owned Business

A business that is at least 51% owned, operated, and controlled by individuals belonging to a racial or ethnic minority group.