Which of the following is not a current liability?

Which of the following is not a current liability?

a. Salaries and Wages Payable

b. Accounts Payable

c. Taxes Payable

d. Bonds Payable

Answer: d. Bonds Payable

Bonds payable are not considered a current liability because they’re long-term sources of loans that have long maturity of more than one year. These current liabilities, conversely, are obligations, which are due for servicing within the time period of one year or one operating cycle whichever is longer.

Wage and other salaries, accounts and taxes payable are examples of current liabilities because they result from normal business ss operations and are expected to be settled in the next twelve months. These include the sums due to employees for the services provided and suppliers and taxes payable to the government in regard to the accounting period.