Chapter 13, Problem 13.3P

1

To determine

Current and Long-Term Liabilities

Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors. Liabilities are classified in to current liabilities and long-term liabilities. Current liabilities are those liabilities which need to be paid within a year. Long-term liabilities are those liabilities that have longer maturity period.

To determine: The amount of current liability and long-term liability that can be excluded from classification as a current liability (that is reported as noncurrent liability).

2

To determine

To prepare: Liability (current and long-term liability) section of a classified balance sheet at December 31, 2016.