Which of the following typically would not be done to satisfy a current liability?
A)Use long-term assets to satisfy the liability
B)Render a service to satisfy the liability
C)Use current assets to satisfy the liability
D)Take on another current liability to satisfy the liability

Question

Quizplus · Accepted Answer

Using long-term assets to satisfy a current liability is not a typical action to take because it could lead to liquidity problems in the future when those assets are needed for other long-term obligations. Current liabilities should be satisfied using current assets or by generating revenue through rendering a service or taking on short-term loans or other current liabilities.

Which of the Following Typically Would Not Be Done to Satisfy