Question

Johnson purchases an office building and finances it with a 30-year mortgage. The payments Johnson will make in the next 12 months areconsidered: (2.5 Points)

Answer 1

Answer: Current liabilities

Step-by-step explanation:

Current liabilities are financial obligations that a company must meet within the next period which is 12 months. Any obligation that should be met after a year is considered a long term liability. This is the category that bonds fall under.

The first yearly payments here are to be made within the next 12 months so these will be considered current liabilities.