Examples of a current liability include all of the following except:
A)Prepaid rent.
B)Accrued income taxes payable.
C)Accrued wages payable.
D)Current portion of long-term debt.
E)Accounts payable.

Question

Quizplus · Accepted Answer

Prepaid rent is not a current liability because it represents an advance payment for future use of a facility or property, rather than an obligation to pay a debt or settle an expense within the current operating cycle. The other options are all examples of current liabilities because they represent amounts owed to others for goods, services, or taxes that have been incurred but not yet paid.

Examples of a Current Liability Include All of the Following