Chapter 3, Problem 3.1BE

Current versus long-term classification

• LO3–2, LO3–3

Indicate whether each of the following assets and liabilities should be classified as current or long-term: (a) accounts receivable; (b) prepaid rent for the next six months; (c) note receivable due in two years; (d) note payable due in 90 days; (e) note payable due in five years; and (f) patent.