Current liabilities become due:
A) Within one year.
B) Within the operating cycle of a business.
C) When bills have to be paid.
D) A or B,whichever is longer.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Current liabilities are defined as obligations that are due within one year or within the operating cycle of a business, whichever is longer. Therefore, choice D is the correct answer as it covers both possibilities. Choices A, B, and C are also true individually, but do not include both possibilities. Choice E is not the best answer as it is too inclusive and does not provide a specific choice.

Current Liabilities Become Due