Question

Which one of the following is a current liability?

• Estimated taxes just paid

• Note payable in nine months

• Amount due to a supplier in 18 months

• Loan payment due in 13 months

• Amount due from a customer in 30 days

Answer 1

In the given options

(1) Estimated tax just paid is no more a liability, so it is not current liability

(2) Notes Payable in 9 months is the short term obligation and is considered as current liability.

(3) Amount due to supplier in 18 months is a long term liability since it is exceeding 12 months.

(4) Loan Payment due in 13 months is a long term liability since it is exceeding 12 months.

(5) Amount due from customers in 30 days is an accounts receivable which is considered as current asset.

Hence option 2 is the current liability