Current liabilities are
A) due and receivable within one year
B) due and to be paid out of current assets within one year
C) due, but not payable for more than one year
D) payable if a possible subsequent event occurs

Question

Quizplus · Accepted Answer

Current liabilities are defined as obligations that are due and expected to be paid within one year or within the company's normal operating cycle, whichever is longer. These obligations are typically paid out of the company's current assets, such as cash or inventory. Therefore, choice B is the best answer as it accurately reflects the definition of current liabilities.

Current Liabilities Are