Which of the following would appear on the balance sheet as a current liability?
A)A loss that could be expected upon the occurrence of a strike by employees.
B)Potential damages from the risk of explosions in a fireworks factory.
C)Payments that are likely to occur for pension benefits to employees.
D)A possible loss from a threatened lawsuit.

Question

Quizplus · Accepted Answer

Payments that are likely to occur for pension benefits to employees are considered a current liability because they are expected to be paid within the next year. The other options are not current liabilities as they are either potential losses or losses that may or may not occur in the future.

Which of the Following Would Appear on the Balance Sheet