A current liability is:
A) a liability expected to be paid beyond one year of the reporting date.
B) a liability expected to be paid within one year of the reporting date.
C) a liability expected to be paid within six months of the reporting date.
D) a liability arising from past events that will be confirmed by the occurrence of future events.

Question

Quizplus · Accepted Answer

A current liability is a liability that is expected to be paid within one year from the reporting date. Option A applies to long-term liabilities, option C is a subset of current liabilities, and option D refers to a contingent liability.

A Current Liability Is