A Two-Year Note Payable Would Be Classified as A

question 79

Multiple Choice

A two-year note payable would be classified as a:

• A) current liability.
• B) current asset.
• C) long-term liability.
• D) long-term asset.

---

Definitions:

De Facto Corporation

A business entity that operates like a corporation but hasn't completed all legal steps required for incorporation, often treated as a corporation for most legal purposes.

Incorrect Address

An inaccurate or wrong location description, which can result in misdirected mail or deliveries.

Close Corporation

A private company characterized by a limited number of shareholders and operated with less formal structures than a publicly traded company.

Formal Records

Official documents that accurately capture and store information or transactions for future reference.