- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 19. Understanding Balance Sheets
- Subject 1. Components and Format of the Balance Sheet
CFA Practice Question
Which of the following is (are) not (a) current liability (liabilities) as of Dec. 31, 2015?
II. The portion of long-term debt due in 2016
III. Warranty liability for products carrying a two-year warranty sold during 2015
IV. The interest due to creditors and bond holders for 2016, to be paid in 2016
I. Management fees collected in advance in 2015, to be earned during 2016
II. The portion of long-term debt due in 2016
III. Warranty liability for products carrying a two-year warranty sold during 2015
IV. The interest due to creditors and bond holders for 2016, to be paid in 2016
A. I and III
B. II only
C. IV only
User Contributed Comments 5
| User | Comment |
|---|---|
| Dinosaur | The interest payable is not a current but long-term liability... tricky tricky |
| StanleyMo | interest payable: This current liability account reports the amount of interest the company owes as of the date of the balance sheet. (Future interest is not recorded as a liability.) |
| gill15 | If the warranty had a 3 year warranty it would be Long term then? |
| cdileva | It is iv as no obligation existed as at the end of 2015. |
| Inaganti6 | @stanleymo LOVE YOU |