Question

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

20. Current portion of long-term note payable

Short answer

The correct answer is E, Current liabilities.

Step-by-step solution

Definition of Liabilities

Liabilities are the obligations, that an organization owes from the outsiders. It is the difference between the assets and equity of the organization.

Reason of choice

As the current portion of long-term notes payable needs to be settled in the current accounting period, it should be disclosed as the current liability of the organization.