If the maturity period of a loan is 18 months, it is classified as _______ in the balance sheet.

Question

If the maturity period of a loan is 18 months, it is classified as _______ in the balance sheet.

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Solution 1

The loan would be classified as a "Current Liability" in the balance sheet. Here's the step by step explanation:

In accounting, liabilities are classified into two categories: Current Liabilities and Non-Current Liabilities.
Current Liabilities are obligations that are due within a short-ter Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

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