Current liabilities include
A) amounts due from suppliers for credits on accounts given on returns which had previously been paid.
B) taxes withheld from employees' payroll checks which must be remitted to the IRS.
C) amounts paid for warranty repairs during the current year.
D) cash dividends to be declared by the board of directors during the next six months.

Question

Quizplus · Accepted Answer

Current liabilities are obligations a company needs to settle within a year. Taxes withheld from employees' payroll checks are a liability because they must be remitted to the IRS within a short period.

Current Liabilities Include