Current liabilities are the obligations that are reasonably expected to be liquidated either by creation of other current liabilities or through the use of current assets.

Question

Quizplus · Accepted Answer

Current liabilities are indeed obligations that a company expects to pay off within one year or within its normal operating cycle, whichever is longer, typically using current assets or by creating other current liabilities.

Current Liabilities Are the Obligations That Are Reasonably Expected to Be