debt or liability that will take longer than 12 months to pay off is classified as a/an ________________. Group of answer choices current liability long-term asset long-term liability accounts payable

debt or liability that will take longer than 12 months to pay off is classified as a/an ________________. Group of answer choices current liability long-term asset long-term liability accounts payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

A debt or liability that will take longer than 12 months to pay off is classified as a/an ________________.

Group of answer choices

current liability

long-term asset

long-term liability

accounts payable

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