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?

a. The amount they plan to pay off in 2018 would be classified as a current liability, and the amount they plan to pay off in 2019 would be classified as a long-term liability.

b. The amount they plan to pay off in 2018 would be classified as property, plant, and equipment, and the amount they plan to pay off in 2019 would be classified as a long-term investment.

c. The amount they plan to pay off in 2018 would be classified as depreciation, and the amount they plan to pay off in 2019 would be classified as a long-term liability.

d. The amount they plan to pay off in 2018 would be classified as a current liability, and the amount they plan to pay off in 2019 would be classified as a long-term investment.

Answer rating: 100% (QA)

The Correct Answer is Option D D The amount they plan to pay off in 2023 would be classified as a cu... View the full answer