Current liabilities
A) are obligations that the company is to pay within the forthcoming year.
B) are listed in the statement of financial position in order of their expected maturity.
C) are listed in the statement of financial position starting with accounts payable.
D) should not include long-term debt that is expected to be paid within the next year.

Question

Quizplus · Accepted Answer

Current liabilities are obligations that the company is to pay within the forthcoming year. This includes accounts payable, short-term loans, and accrued expenses. They are listed in the statement of financial position in order of their expected maturity, with the ones due first being listed first. Long-term debt that is expected to be paid within the next year should be included as a current liability.

Current Liabilities