Which of the following may be a current liability?
A)Withheld Income Taxes
B)Deposits Received from Customers
C)Deferred Revenue
D)All of these

Question

Quizplus · Accepted Answer

Withheld Income Taxes (A) are a current liability because the company has collected and owes this money to the government on behalf of its employees, and it will be due within one year. Deposits Received from Customers (B) may be a current liability if the customer has paid in advance for goods or services that have not yet been delivered. Deferred Revenue (C) is a current liability if the company has received payment for goods or services that have not yet been delivered or earned. Therefore, all of these options (D) could be current liabilities.

Which of the Following May Be a Current Liability