Identify the current liability.
A) wages owing
B) loan from B Buy (due in 4 months)
C) bill payable (due in 2 years)
D) A and B

Question

Quizplus · Accepted Answer

Current liabilities are financial obligations of a business entity that are due and payable within a year. A) wages owing and B) loan from B Buy (due in 4 months) both qualify as current liabilities because they are due within the next 12 months. C) bill payable (due in 2 years) does not qualify as it is due beyond one year.

Identify the Current Liability