Answer Happy

The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. 1. Accounts payable (due in 30 days) 2. Bonus payable (to be paid in 60 days) 3. Patents (to expire after 5 years) 4. Interest payable (due in 90 days) 5. Notes payable (due in 120 days). 6. Sales taxes payable. 7. FICA-Medicare Taxes Payable Item 8. Unearned revenues (to be earned over next 3 months) 9. Salaries payable 10. Pension liability (to be paid to employees retiring in 2 to 5 years) Classification