Debts listed as current liabilities are those that
A) will be paid in less than one year
B) are due to be paid in 5 to 10 years
C) are due to be paid in more than one year
D) are owed to the owner and will never be paid

Question

Quizplus · Accepted Answer

Current liabilities are debts that are expected to be paid off within one year or one operating cycle (whichever is longer). Therefore, choice A is correct as it states that the debts will be paid in less than one year. Choices B, C, and D are incorrect as they do not meet the definition of current liabilities.

Debts Listed as Current Liabilities Are Those That