Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following is a long-term liability?

Accounts payable

Salaries payable

Unearned revenue

Bonds payable

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Verified step by step guidance

Step 1: Understand the concept of liabilities. Liabilities are obligations that a company owes to external parties, and they are classified into two categories: current liabilities (short-term) and long-term liabilities.

Step 2: Define long-term liabilities. Long-term liabilities are obligations that are not due within the company's operating cycle or one year, whichever is longer. Examples include bonds payable, long-term loans, and lease obligations.

Step 3: Review the options provided in the problem. Accounts payable and salaries payable are current liabilities because they are typically due within a short period (usually within one year). Unearned revenue is also a current liability as it represents payments received for goods or services not yet delivered, which are expected to be fulfilled within the short term.

Step 4: Identify bonds payable as a long-term liability. Bonds payable represent debt that a company has issued to investors, typically with a maturity date longer than one year. This makes it a long-term liability.

Step 5: Conclude that bonds payable is the correct answer based on the definition and classification of long-term liabilities.