Which of the Following Would Most Likely Be Classified as a Current

question 155

Multiple Choice

Which of the following would most likely be classified as a current liability?

• A) Two-year Notes Payable
• B) Bonds Payable
• C) Mortgage Payable
• D) Unearned Rent

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Definitions:

Cost of Goods Sold

Expenses directly related to the production of the goods sold by a business, including material costs and direct labor, crucial for calculating gross profit.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory and cost of goods sold are calculated at set intervals, such as monthly or annually.

FIFO

A method of inventory valuation where the first items purchased are the first ones to be sold.