A current liability includes obligations which must be repaid
A)within one year.
B)within one year or within the operating cycle, whichever is shorter.
C)within one year or within the operating cycle, whichever is longer.
D)by the end of the operating cycle.

Question

Quizplus · Accepted Answer

Current liabilities are obligations that a company expects to pay within one year or within its operating cycle, whichever is longer. This definition allows for the inclusion of debts that may extend slightly beyond a year if the company's normal operating cycle is longer than one year.

A Current Liability Includes Obligations Which Must Be Repaid