Question:
Answer:
a. Current liabilities are obligations that are expected to be paid within one year or the operating
cycle, whichever is longer.
Accounts payable $15,000
Bonds payable 22,000
Dividends payable 8,000
Total current liabilities $45,000
The notes payable are not classified as current liabilities because they are not due until 2015.
Answer:
a. Current liabilities are obligations that are expected to be paid within one year or the operating
cycle, whichever is longer.
Accounts payable $15,000
Bonds payable 22,000
Dividends payable 8,000
Total current liabilities $45,000
The notes payable are not classified as current liabilities because they are not due until 2015.
