The following information is for Acme Auto Supplies: The total dollar amount of liabilities to be classified as current liabilities is
A) $195,000.
B) $225,000.
C) $465,000.
D) $495,000.

Question

The following information is for Acme Auto Supplies:  The total dollar amount of liabilities to be classified as current liabilities is
A) $195,000. 
B) $225,000. 
C) $465,000. 
D) $495,000.

Quizplus · Accepted Answer

To determine the total dollar amount of current liabilities, we need to look for items that are due within one year or the operating cycle, whichever is longer. In the given information, we have the current portion of long-term loans ($100,000), accounts payable ($75,000) and accrued expenses ($50,000), which add up to $225,000. Therefore, the correct answer is B.

The Following Information Is for Acme Auto Supplies: the Total