EXERCISES Exercise 11-1 Classifying abilities C1 The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability. L if it is a long-term liability, or if it is not a liability. 1. Notes payable (due in 13 to 24 months). 6. FUTA taxes payable. 2. Notes payable (due in 6 to 11 months). 7. Accounts receivable. 3. Notes payable (mature in five years). 8. Sales taxes payable. 4. Current portion of long-term debt. 9. Salaries payable. 5. Notes payable (due in 120 days). 10. Wages payable