All of the following statements about current liabilities are true except:
A) Current liabilities are obligations which will be satisfied within one year.
B) Current liabilities are normally recorded at face value .
C) The current liability section never contains any portion of long-term liabilities.
D) Current liabilities finance the working capital of the company.

Question

Quizplus · Accepted Answer

The statement "The current liability section never contains any portion of long-term liabilities" is false. Current liabilities can include portions of long-term liabilities that are due within one year, such as current maturities of long-term debt.

All of the Following Statements About Current Liabilities Are True