Business FinancesQuestion 1185 of 1605
On a balance sheet, which is a CURRENT liability?
a.A 20-year mortgage principal
b.A 5-year equipment loan's total balance
c.Accounts payable due in 30 days
d.Owner's equity
Explanation
Current liabilities are obligations due within one year, such as accounts payable, accrued wages, and short-term notes. Long-term debt like a 20-year mortgage or a 5-year loan (beyond the portion due this year) is a long-term liability, and equity is not a liability.
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