Question

When preparing the balance sheet for papago Co. for December 31st 2018 which item would not be classified as a current liability?

A. Note payable due March 1, 2020
B. The current portion of a 30-year more
C. Accounts payable
D. Income taxes due on September 15, 2010

Answer 1

B. The current portion of a 30-year mortgage.

Step-by-step explanation:

When preparing the balance sheet for Papago Co. for December 31st, 2018, which item would not be classified as a current liability?

The correct answer is B. The current portion of a 30-year mortgage. Current liabilities are obligations that are due within one year or within the operating cycle of the company, whichever is longer.

In this case, a 30-year mortgage is a long-term liability and not due within the next year, so it would not be classified as a current liability.