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.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.