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Which of the following is NOT a current liability account?
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9. Current Liabilities
Types of Liabilities
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Which of the following accounts is NOT classified as a current liability?
A
Accrued Expenses
B
Notes Payable (due in 2 years)
C
Accounts Payable
D
Unearned Revenue
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Understand the definition of current liabilities: Current liabilities are obligations that a company expects to settle within one year or the operating cycle, whichever is longer.
Review each account listed in the problem and determine whether it meets the criteria for a current liability.
Accrued Expenses: These are expenses that have been incurred but not yet paid, typically settled within a year, so they are classified as current liabilities.
Accounts Payable: These represent amounts owed to suppliers for goods or services received, usually settled within a year, making them current liabilities.
Notes Payable (due in 2 years): Since this obligation is due beyond one year, it does not meet the criteria for a current liability and is classified as a long-term liability.
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