For which of the following reasons would a user examine the current liabilities?
A)to determine how quickly accounts receivable are collected
B)to determine how much cash will be required to meet obligations in the short term
C)to determine how much cash will be required to meet obligations in the long-term
D)to evaluate company performance

Question

Quizplus · Accepted Answer

Current liabilities represent the obligations that the company must pay within the next year. Therefore, a user would look at current liabilities to determine how much cash will be required to meet those obligations in the short term.

For Which of the Following Reasons Would a User Examine