Determine the correct classification of the following liabilities:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Determine the correct classification of the following liabilities:
(1) Liability with a due date which can be accelerated to within one year of the statement of financial position date; a reasonable probability exists that the due date will be accelerated.
(2) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is remote.
(3) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is reasonable but not likely.
(4) Current portion of long-term debt.
(1) Liability with a due date which can be accelerated to within one year of the statement of financial position date; a reasonable probability exists that the due date will be accelerated.
(2) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is remote.
(3) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is reasonable but not likely.
(4) Current portion of long-term debt.
All are long term liabilities.
All are current liabilities.
Only number 1 is noncurrent.
Only numbers 1 and 3 are noncurrent.
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