Which of following recognize as a current liability?

Agree. The Notes Payable can be a current liability if part or the whole of the note is payable or due within1 year. The Bank overdraft is also a current liability unless the company maintains two accounts in the SAME Bank and the other account has a positive balance wherein they can offset the overdraft. The unearned income is also a current liability for the advance payments from customers where the company is yet to render service or deliver the goods.

The answer is A, B, and C.

Notes payable can be current liability when is due to be settled within the next accounting period. This is also true when there is installment payment of notes payable in which current portion (due within the next accounting period) of Notes payable is recorded as currently liability.

Bank overdraft is presented as currently liability.

Unearned income could be current or non-current depending on the delivery of goods or the rendering of services. Unearned income is presented as current liability when it is due to be settled within the next accounting period. But in case of Unearned interest income with regards to bond, unearned interest income that is due to be amortized within the next accounting period is presented as current liability if not otherwise.

Prepaid expense is an asset account.

Point no. (D) is not a liability at all.

Regarding (A) & (C) both of them have the possibility to be current and non-current liability.

For (B) we have two two answers:

The First answer is the normal answer for any Auditor and/or Certified Public Accountant; their answer is that the OVERDRAFT is a current liability. From practice this answer is totally wrong.

The2nd answer is Correct & abnormal answer; for any financial and/or banker; the answer is that the OVERDRAFT is non-current liability as a result of the following reasons:

I. OVERDRAFT is a fast moving account which never has an end or a maturity.

ii. OVERDRAFT is always related to the minimum required amount of the working capital that any company has to keep it fixed.

iii. For any banker, the OVERDRAFT is representing the Sank Amount of the total amount of the Credit Facilities. When the banker (i.e. the Creditor) decide to have an exit strategy for the OVERDRAFT, the only way to close this account is granting long-term loan to close the balance of the OVERDRAFT. 

Options A, B and C are the right options.   D is current Asset.

Only Option D is wrong option...............................

All except D.'...,..,,,,,,,,,,,,,,,.....

I don't think the name is sufficient for classification. C is a current liability, while A and B could be current liabilities given certain conditions:

A. A current liability if expected to be due within a year.

B. Can be considered with cash and cash equivalents if "revolving", i.e., the bank balance often fluctuates from positive to overdrawn and is settled automatically. Otherwise it's a current liability.

C. Unearned income (or revenue) is a current liability.

Option A)note payable......

All except last=====================

Notes Payable has the strongest influence for being considered as current liability as this is the most liquidated liability which will have to paid in the shorter time period/one year