Extreme Sports, a Bicycle, ATV, and Motorbike Retailer, Buys Its

Multiple Choice

Extreme Sports, a bicycle, ATV, and motorbike retailer, buys its inventory on credit. Before Extreme pays for this merchandise in 60 days, the money owed is classified on its balance sheet as a(n)

A) current asset.
B) intangible asset.
C) account payable.
D) long-term liability.
E) account receivable.