Which of the following would not be classified as a current liability on a. Which of the following would not be classified as a. School University of Santo Tomas; Course Title ACCOUNTING FINANCIAL ; Uploaded By wisecollege12. Pages 10 This preview shows page 1 ...
Jan 29, 2015 · A current liability is defined as a commitment or obligation which requires a company to transfer as- sets, create a new current liability, or provide services to another entity at some point in the future that must occur a. within one year. b. within one year or within the operating cycle, whichever is shorter. c.
Current liabilities: It is the liability which often understood as all liabilities of business that are to settle in cash within fiscal year or operating cycle of given firm, whichever time is longer. Therefore, late payment is not disclosed on balance sheet for A/P. Therefore, offsetting current liabilities against assets that are to apply to ...
May 29, 2017 · 55. A current liability is defined as a commitment or obligation which requires a company to transfer assets, create a new current liability, or provide services to another entity at some point in the future that must occur A. within one year. B. within one year or within the operating cycle, whichever is shorter. C. within one year or within the operating cycle, …
The correct option is (b) Note payable, due in three years.
Examples of current liabilities include accounts payable, short-term debt, dividends, and notes payable as well as income taxes owed.
Answer. Cash is not a liability account. Account payable, notes payable and accured expenses are all a liability in nature while cash represents assets.Dec 28, 2018
Examples of current liabilities:Accounts payable. Accounts payables are.Interest payable.Income taxes payable.Bills payable.Bank account overdrafts.Accrued expenses.Short-term loans.
Debenture are issued by the firm to get the money in business for long term purposes. This amount need to repay after a considerable long time i.e. more than 3 years. Hence debenture are not considered as current liabilities.
Current liabilities are those liabilities which are to be settled within one financial year. Noncurrent liabilities are those liabilities which are not likely to be settled within one financial year.Aug 9, 2019
Land is regarded as a fixed asset or non-current asset in accounting and not a current asset.
A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
Cash. (Accounts Payable) Building. Equipment. **Accounts Payable is NOT an asset.
What Are Other Current Liabilities? Other current liabilities, in financial accounting, are categories of short-term debt that are lumped together on the liabilities side of the balance sheet. The term "current liabilities" refers to items of short-term debt that a firm must pay within 12 months.
Current assets are those that you can convert into cash within one year, such as short-term investments and accounts receivable. Non-current assets are longer-term assets with a full value that you cannot recognize until after one year, such as property and machinery.Nov 2, 2021