A current liability is defined as a commitment or obligation which requires a company to transfer assets, create a new current liability, or provide services to another entity at some point in the future that must occur
A)within one year.
B)within one year or within the operating cycle, whichever is shorter.
C)within one year or within the operating cycle, whichever is longer.
D)by the end of the operating cycle.

Question

Quizplus · Accepted Answer

Current liabilities are obligations that a company expects to pay within the next year or within its operating cycle, whichever is longer. This includes debts and other financial commitments that are due within this timeframe.

A Current Liability Is Defined as a Commitment or Obligation