Debts that are due to be paid within one year or within the company's operating cycle are called
A) liquid liabilities.
B) current liabilities.
C) quick liabilities.
D) deferred liabilities.
E) long-term liabilities.

Question

Quizplus · Accepted Answer

Current liabilities are debts that are due to be paid within one year or within the company's operating cycle. A company's operating cycle is the time it takes to purchase or produce inventory, sell it, and collect payment from customers. Current liabilities include items such as accounts payable, short-term loans, and accrued expenses.

Debts That Are Due to Be Paid Within One Year