객관식
A current liability is a debt that is reasonably expected to be paid:
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9. Current Liabilities
Current Portion of Long Term Debt
객관식
ABC Company is preparing the liabilities section of its December 31, 2018 balance sheet. Selected information includes \$20,000 in accounts payable, \$100,000 in bonds payable, \$80,000 of short-term debt, \$10,000 in wages payable, \$10,000 in prepaid rent expense, and \$20,000 of unearned revenue. Furthermore, on January 1, 2018, ABC Company signed a \$60,000, 10% note payable with interest payable annually on December 31. The principal of the note payable is repaid in \$10,000 annual installments on January 1 of each year. The total of ABC's current liabilities is:
A
\$300,000
B
\$240,000
C
\$150,000
D
\$140,000
검증된 단계별 안내1
Identify all the current liabilities from the given information. Current liabilities are obligations that are expected to be settled within one year.
List the current liabilities: Accounts Payable (\$20,000), Short-term Debt (\$80,000), Wages Payable (\$10,000), and Unearned Revenue (\$20,000).
Consider the note payable: Since the principal is repaid in \$10,000 annual installments, the \$10,000 due on January 1, 2019, is a current liability.
Exclude non-current liabilities and non-liabilities: Bonds Payable (\$100,000) is a long-term liability, and Prepaid Rent Expense (\$10,000) is an asset, not a liability.
Add up all the current liabilities identified: \$20,000 (Accounts Payable) + \$80,000 (Short-term Debt) + \$10,000 (Wages Payable) + \$20,000 (Unearned Revenue) + \$10,000 (Current portion of Note Payable) to find the total current liabilities.
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