An account which would be classified as a current liability is
A) dividends payable in the form of a company's stock.
B) accounts payable-debit balances.
C) losses expected to be incurred within the next twelve months in excess of the company's insurance coverage.
D) none of these answers are correct.

Question

Quizplus · Accepted Answer

None of the options listed (A, B, C) represent typical current liabilities as they are defined in accounting. Current liabilities are debts or obligations that are due within one year and are usually settled by using current assets. Option A is not a liability but an equity transaction, B is not typically classified as a liability but rather an asset (or an error if it's meant to represent a negative balance), and C is a contingent liability that may not be recognized as a current liability until the loss is incurred and measurable.

An Account Which Would Be Classified as a Current Liability