Question

of the following, which typically would not be classified as a current liability? Multiple Choice o A six-month bank loan to be paid with the proceeds from the sale of common stock. . Rent revenue received in advance. 0 0 A long-term noté payable maturing within the coming year. 0 Estimated liability from cash rebate program Google Chrome

Answer 1

Correct answer-----------Estimated liability from cash rebate program.

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A current liability is a liability which is expected to be paid or settled with in a year or with an operating cycle.

The notes payable given in options above maybe long term but the payment that is required to be paid in coming year will be classified as current liability and so will be the bank note for six month. Unearned revenue is also assumed to be settled in a year.