Question

Which of the following is considered to be a long-term liability on December 31st, 2014?

A: an accounts payable due January 31st, 2015
B: accrued salaries payable from 2014
C: a note payable due December 31st, 2015
D: a 2-year lease agreement due monthly through December 2016

Answer 1

A note payable due December 31st, 2015, is considered a long-term liability.

Step-by-step explanation:

The correct answer is C: a note payable due December 31st, 2015. A long-term liability refers to any debt or financial obligation that is owed for more than one year from the balance sheet date. In this case, a note payable with a due date of December 31st, 2015, qualifies as a long-term liability as it is due more than one year from December 31st, 2014.