4. Discount on Notes Payable is a contra account to Notes Payable on the balance sheet.
5. All long-term debt maturing within the next year must be classified as a current liability on the balance sheet.
6. A short-term obligation can be excluded from current liabilities if the company intends to refinance it on a long-term basis.
7. Many companies do not segregate the sales tax collected and the amount of the sale at the time of the sale.