Which of the Following Is Not a Current Liability

question 106

Multiple Choice

Which of the following is not a current liability?

• A) Accounts payable.
• B) A note payable due in two years.
• C) Accrued interest payable.
• D) Sales tax payable.

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Definitions:

Activity-based Costing

An accounting method that assigns costs to products based on the activities performed in producing that product, providing more accurate product costing.

Second-stage Allocation

In cost accounting, this is the process of allocating service department costs to producing departments based on relevant measures.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their use of activities, leading to more accurate product costing.

Profitable Products

Products that generate more revenue than the costs involved in their creation, marketing, and distribution.