on a classified balance sheet:\na. dividends is a current asset.\nb. accounts receivable is a current…
on a classified balance sheet:\na. dividends is a current asset.\nb. accounts receivable is a current liability.\nc. salaries payable is a long - term liability.\nd. notes payable due in one year is a current liability.
Answer
Brief Explanations:
- Option A: Dividends are not an asset. They are a distribution of earnings to shareholders.
- Option B: Accounts Receivable is a current asset (amounts owed to the company by customers), not a liability.
- Option C: Salaries Payable is a current liability (amounts owed to employees for work already done, usually paid within a short - term, like a month).
- Option D: Notes Payable due in one year meets the definition of a current liability (obligation to be settled within one year or the operating cycle, whichever is longer).
Answer:
D. Notes Payable due in one year is a current liability.