Which of the following is a current liability?
A)A long-term debt maturing currently, which is to be paid with cash in a sinking fund
B)A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue
C)A long-term debt maturing currently, which is to be converted into common stock
D)None of these

Question

Quizplus · Accepted Answer

None of the options represents a current liability. A current liability is an obligation that is expected to be settled within one year or within the company's normal operating cycle. None of the options given meet this criteria, therefore D is the correct answer.

Which of the Following Is a Current Liability