Which of the following is a characteristic of a current liability but not a long-term liability?
A) Unavoidable obligation.
B) Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.
C) Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities.
D) Transaction or other event creating the liability has already occurred.

Question

Quizplus · Accepted Answer

Current liabilities are expected to be settled within the entity's normal operating cycle or within a year, requiring the use of current assets or the creation of other current liabilities. Long-term liabilities, on the other hand, are not expected to be settled within this timeframe.

Which of the Following Is a Characteristic of a Current