Series 79 practice questioneasyBalance Sheet Structure
Which of the following items would most likely be classified as a current liability on a company’s balance sheet?
- AAccounts Receivable
- BLong-Term Debt
- CAccounts Payable✓ Correct answer
- DGoodwill
Explanation
Why C — Accounts Payable
Accounts payable is a current liability, representing amounts owed to suppliers. Accounts receivable is a current asset, long-term debt is a non-current liability, and goodwill is an intangible asset.
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