Question

Among the short-term obligations of Larsen Company as of December 31, the balance sheet date, are notes payable totaling $250,000 with the Dennison National Bank. These are 90-day notes, renewable for another 90-day perio These notes should be classified on the balance sheet of Larsen Company asA. current liabilitiesB. deferred charges.C. long-term liabilities.D. intermediate debt.

Answer 1

A. current liabilities

Step-by-step explanation:

notes payable are for a period of 90 days which falls under the definition of current liabilities and not for any other given option. current liabilities are those liabilities which are maximum up to 12 months of period. so we should answer A. current liabilities