Current liabilities are obligations of a company that it expects to liquidate within
A) one year.
B) the normal operating cycle.
C) the normal operating cycle or one year, whichever is longer.
D) the normal operating cycle or one year, whichever is shorter.

Question

Quizplus · Accepted Answer

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

Current Liabilities Are Obligations of a Company That It Expects