Which of the following liabilities is properly classified as a current liability?
A)currently maturing bonds payable that will be paid out of a fund accumulated for that purpose
B)short-term notes payable being refinanced with long-term notes
C)obligations that will be paid outside the operating cycle
D)obligations for goods and services that have entered the operating cycle

Question

Quizplus · Accepted Answer

Current liabilities are obligations that are expected to be paid within one year or the company's operating cycle, whichever is longer. Obligations for goods and services that have entered the operating cycle are considered current liabilities. The other options (A, B, and C) do not meet the definition of a current liability.

Which of the Following Liabilities Is Properly Classified as a Current