In your earlier coursework, you were introduced to the distinction between current liabilities and noncurrent (long-term) liabilities, as both of these items comprise subcategories that we would typically find on a classified balance sheet. Here are a couple of specific questions to start out this discussion.

1.Provide an example of an account that would be listed under current liabilities on a balance sheet and briefly explain why it would be categorized this way.

2.How would we categorize the balance in a notes payable account: under current liabilities or long-term liabilities? Why?