Which of the following is NOT an example of a current liability? A) n

QUESTION

Which of the following is NOT an example of a current liability?

A) notes payable
B) accounts payable
C) a six-month bank loan
D) bonds payable
E) an unpaid electric bill

ANSWER

Answer: D
Explanation: D) Current liabilities are obligations in which payments are due within one year. The most common current liabilities are accounts payable (an electric bill, for example) and notes payable. Bonds payable are long-term liabilities that represent money lent to the firm that must be paid off.