Which of the following would most likely be classified as a current liability? a. bond payable b. two-year note payable c. mortgage payable d. unearned rent

Based on the definition of a current liability, the most likely option to be recorded as such is d. unearned rent

Current liability:

Unearned rent is an obligation to the tenants who paid it because the company owes them the space that was rented. This stands until the period that the rent is paid for elapses and this usually happens within the year.

In conclusion, unearned rent is a current liability because the company owes services.

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A current liability would be Option D: Unearned rent

Explanation:

Current liabilities are the ones that need to be paid within a year, out of current assets.

In case of 'unearned rent', debit is recorded to the cash account by the landlord. And a balancing credit is logged to the unearned rent account This is a liability account.

The rent is unearned under the cash basis of accounting. the rent that is received by the landlord is considered his income. Thus, out of the given options, unearned rent is the current liability.