Most companies pay current liabilities
A)out of current assets.
B)by issuing notes payable.
C)by issuing common shares.
D)by creating non-current liabilities.

Question

Quizplus · Accepted Answer

Current liabilities are expected to be paid within one year or the operating cycle, whichever is longer. Most companies pay these liabilities out of their current assets, such as cash or short-term investments. Option B and C are not typically used to pay current liabilities, and option D creates long-term liabilities rather than paying current ones.

Most Companies Pay Current Liabilities