Which of the following is not a current liability?
A)A liability due within one year for a business with a fifteen-month operating cycle.
B)A liability due within three months for a business with a two-month operating cycle.
C)A liability due within one year for a business with a nine-month operating cycle.
D)A liability due within fifteen months for a business with a one-year operating cycle.

Question

Quizplus · Accepted Answer

A current liability is a liability that is due within one year or one operating cycle, whichever is longer. Option D states a liability due within fifteen months for a business with a one-year operating cycle, which means it is not due within one year or the operating cycle, making it a long-term liability instead of a current liability.

Which of the Following Is Not a Current Liability