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Unformatted text preview: prepayment is classified as a current asset however if rent were prepaid for a period extending beyond the coming year a portion of the prepayment is classified as another asset a noncurrent asset. 5. Notes payable, can be a current liability or a long term liability. A portion of the payment might not be satisfied with in one year or the operating cycle whichever is longer. 6. Bonds Payable, are classified in the balance sheet as a current liability, however, in some cases it might be a long term liability. You can distinguish the two apart by knowing if the bond needs to be satisfied in one year or the operating cycle which ever might be longer....
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This note was uploaded on 02/11/2009 for the course ACC 22334 taught by Professor Clark during the Spring '09 term at VCCS.
- Spring '09