Which of the following statements about current liabilities is true?
A)Current liabilities are always less than current assets.
B)Current liabilities are amounts from non-operating activities only.
C)Current liabilities will be paid or satisfied within an operating cycle.
D)Current liabilities are legal obligations of the company.

Question

Quizplus · Accepted Answer

Current liabilities are obligations or debts that must be settled or paid within an operating cycle, which is usually one year. Examples of current liabilities include accounts payable, wages payable, taxes payable, and short-term loans.

Which of the Following Statements About Current Liabilities Is True