The current liability is:
A) accrued delivery expenses.
B) accounts receivable.
C) electricity expense.
D) long-term loan.

Question

Quizplus · Accepted Answer

Accrued delivery expenses are expenses that have been incurred but not yet paid and therefore represent a current liability. Accounts receivable (B) represent money that a company expects to receive from its customers in the near future, and therefore are not a liability. Electricity expense (C) is an expense that has already been paid and therefore is not a liability. Long-term loan (D) is a liability that is not due for more than one year, and therefore is not a current liability.

The Current Liability Is