Current Liabilities
The following items represent liabilities on a firm's balance sheet:
An amount of money owed to employees for work performed during the last week in December.
An amount of money owed to a bank for the use of borrowed funds due on March 1, 2017.
An amount of money owed to a creditor as an annual installment payment on a ten-year note.
Required:
1. For each item, state whether it should be classified as a current liability or long-term liability on the December 31, 2016, balance sheet. Assume that the operating cycle is shorter than one year.
2. For each item, state the account title that is normally used to report the item on the balance sheet.