Asked by Samantha Rojas on Jun 04, 2024
Verified
Current liabilities would include all of the following except
A) wages payable
B) obligations under capital lease contracts
C) current portion of long-term debt
D) unearned rent revenue
Unearned Rent Revenue
Income received for rent that has been paid in advance by a tenant but not yet earned by the landlord.
Wages Payable
Wages payable is a liability account that records the amounts owed to employees for work that has been performed but not yet paid.
Capital Lease Contracts
Lease agreements that transfer substantially all risks and rewards of ownership from the lessor to the lessee, effectively treated as a purchase.
- Acquire knowledge about the principle and practical effects of liabilities in finance.
Verified Answer
TA
Tahmid Ahmed ChowdhuryJun 09, 2024
Final Answer :
B
Explanation :
Current liabilities include obligations that are due within one year, such as wages payable, current portion of long-term debt, and unearned rent revenue. Obligations under capital lease contracts are long-term liabilities and would not be included in current liabilities.
Learning Objectives
- Acquire knowledge about the principle and practical effects of liabilities in finance.