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$2\mathrm{.}1$ The Classified Blalance Sheet

IT Engineering currently has two debts: a $$9,000$ debt due in $9$ months and a $$7\mathrm{.}000$ debt due in $14$ months. IT prepares a classihed balance sheet and has an operating cycle of less than one year. How should these debts be classified?

All $$16,000$ in debt should be classified as long$-$term liabilities.

All $$16,000$ in debt should be classified as current liatalitient

The $$7,000$ should be classified as a current liability, and the $$9,000$ should be classified an a long term liability.

The $$9,000$ should be classified as a current liability, and the $$7,000$ should te classifed as a long term liability.

$1236$

$342085$

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