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 answers are correct.

Question

Quizplus · Accepted Answer

None of the options given are current liabilities. Current liabilities typically include accounts payable, accrued expenses, and short-term debt that is expected to be paid within a year.

Which of the Following Is a Current Liability