The debts of a business that will be paid in one year or less are called its
A) current liabilities.
B) expenses.
C) prepaid expenses.
D) current assets.
E) long-term liabilities.

Question

Quizplus · Accepted Answer

Current liabilities are debts that are expected to be paid within one year or the operating cycle of a business, whichever is longer. This includes accounts payable, short-term loans, and other obligations that are due in less than a year.

The Debts of a Business That Will Be Paid in One