Please explain Which of the following balance sheet items is most likely to be classified as current? A. Debt due and payable after the following year. B. Notes receivable from employee due in 18 months. C. Trade payables to suppliers due and payable after 15 months. D. Fifteen-year old equipment in use with a remaining life of one year.
Could that be C?
B? I have no idea!
Folks, explain your logic in your answer. many thanks S
A
Debt due in over 1 year is long term debt. Notes receivable from employee due in 18 months is effectively a long term loan Trade payables due in over 15 months is basically a long-term trade financing. I do with D. The depreciable portion of the long term asset used in the current period.