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Masteriza [31]
3 years ago
13

Anders industries currently holds two debts: an $11,000 debt due in 12 months and a $16,000 debt due in 18 months. anders prepar

es a classified balance sheet using an 18-month operating cycle. how should these debts be classified?
Business
1 answer:
lianna [129]3 years ago
7 0
All $27,000 in debt should be classified as current liabilities. Since the current liabilities section of the balance sheet encompasses obligations that are due to be fulfilled in the near term, and includes amounts relating to accounts payable, incomes, utilities, taxes, short-term loans, and so forth.  Current liabilities are debts that are due to be compensated within one year or the operating cycle, whichever is longer.
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