Question

The portion of bonds or notes payable that is due within one year is reported as a(n)

a.expense on the income statement.
b.part of stockholders' equity.
c.current liability on the balance sheet.
d.long-term liability on the balance sheet.

Answer 1

c.current liability on the balance sheet

Step-by-step explanation:

Current liabilities are the debts that a business owes to outsiders and are due for payments within the current financial year. They are obligations that need to be settled using current assets. A business must keep a close watch of current liabilities and current assets to ensure it can pay its obligations as they become due.

Examples of current liabilities include accounts payable, declared dividends payable, loan interest payble, salaries, and portions of long term debts that are due for payment in the current financial year. Current liabilities are recorded top on the liabilities side of a balance sheet.