Question

All of the following are current liabilities except?

1) Accounts Payable
2) Accrued Interest Payable
3) Sales Tax Payable
4) A Note Payable Due in 2 years

Answer 1

A note payable due in 2 years is not a current liability because it represents a debt that is due beyond the next year.

Step-by-step explanation:

An example of a current liability is a note payable that is due within the next two years. This represents a debt that the company is obligated to repay within a relatively short period of time. Other examples of current liabilities include accounts payable, wages payable, and taxes payable.

On the other hand, a note payable due in 2 years would be classified as a long-term liability. This represents a debt that is due beyond the next year. Long-term liabilities are obligations that the company is not required to repay in the near future. Examples include long-term loans, bonds payable, and deferred revenue.

Therefore, out of the options given, a note payable due in 2 years is not a current liability.