Which of the Following Accounts Could Not Be Classified as a Current

question 95

Multiple Choice

Which of the following accounts could not be classified as a current liability?

• A)Unearned revenues.
• B)Accounts payable.
• C)Notes payable (due in 11 months).
• D)Current portion of long-term note payable.
• E)Notes payable (due in 5 years).

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Definitions:

Legal Costs

Legal Costs are expenses related to legal services such as attorney fees, court fees, and other expenditures incurred in the process of legal advice, litigation, or legal settlement.

Organization Expense

Costs associated with forming a business entity, such as legal fees, registration charges, and administrative expenses.

Market Value

The ongoing rate at which services or assets are being traded in the market.

Organization Costs

Costs incurred in the formation of a corporation.