A current liability is a debt that can reasonably be expected to be paid
A) out of cash currently on hand.
B) within one year.
C) out of currently recognized revenues.
D) between 6 months and 18 months.

Question

Quizplus · Accepted Answer

A current liability is a debt that is expected to be paid within one year or one operating cycle, whichever is longer. This includes debts that are due in a few months or even a few days, as long as they will be paid off within the next year. Choices A, C, and D are incorrect because they do not accurately define a current liability.

A Current Liability Is a Debt That Can Reasonably Be