Jimenez transportation purchased five new transportation vehicles in 2016. they plan to pay these vehicles off in even installments over the next 8 years. on the 2017 year-end financial statements, how would the amount jimenez plans to pay off in 2018 differ from the amount they plan to pay off in 2019

Question

Maren Terry

Business

29 March, 15:29

Jimenez transportation purchased five new transportation vehicles in 2016. they plan to pay these vehicles off in even installments over the next 8 years. on the 2017 year-end financial statements, how would the amount jimenez plans to pay off in 2018 differ from the amount they plan to pay off in 2019

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Laney Bruce · Answer 1

The amount paid off in 2018, being planned for the upcoming year, would be considered a current liability. Since the 2019 payoff amount comes outside the 1-year window, this would be a long-term liability. Long-term liabilities are much less stable in their timeframe than current liabilities.