Which item represents an example of current liability?

The choice of notes payable as an example of a current liability is accurate because current liabilities are obligations that a company expects to settle within one year or within its operating cycle, whichever is longer. Notes payable specifically refers to written promissory notes that a business must pay back within a set timeframe, typically ranging from 30 days to one year. This would classify it as a short-term obligation that directly impacts a company’s immediate financial position.

In contrast, land, buildings, and equipment represent long-term assets. These are items that a company holds with the expectation that they will provide economic benefits over a prolonged period, typically beyond one year. Because they are not obligations that need to be settled in the near term, they do not qualify as current liabilities. Therefore, notes payable stands out as the correct choice in the context of current liabilities.