Obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as:
A) Current liabilities.
B) Long-term liabilities.
C) Bills.
D) Operating cycle liabilities.
E) Current assets.

Question

Quizplus · Accepted Answer

Obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities. Current liabilities are obligations that are expected to be paid within one year or the company's operating cycle, whichever is longer. Bills and operating cycle liabilities are not commonly used accounting terms. Current assets are assets that are expected to be converted into cash or consumed within one year or the company's operating cycle, whichever is longer.

Obligations Not Expected to Be Paid Within the Longer of One