CFA Practice Question

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CFA Practice Question

Which of the following is (are) not (a) current liability (liabilities) as of Dec. 31, 2015?

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
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