Current liabilities are
A) due, but not receivable for more than one year
B) due, but not payable for more than one year
C) due and receivable within one year
D) due and payable within one year

Question

Quizplus · Accepted Answer

Current liabilities are debts or obligations that are due and payable within one year or the operating cycle, whichever is longer. Examples include accounts payable, short-term loans, and accrued expenses. Choice A refers to non-current or long-term liabilities, while choice B does not make sense as it contradicts the definition of liabilities. Choice C is close, but it does not capture the payable aspect of current liabilities.

Current Liabilities Are