Current liabilities can be defined as:
A) debts and obligations that are to be paid within a year.
B) stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash "sit" in a bank account.
C) the amount of money due to a business from prior credit sales.
D) formal debts that will be paid to the company within a year.
E) tangible goods held by a business for the production of goods and services.

Question

Quizplus · Accepted Answer

Current liabilities are debts and obligations that are expected to be paid within one year or within the operating cycle of a business. This would include accounts payable, short-term loans, and accrued expenses. Choices B, C, D, and E are not accurate definitions of current liabilities.

Current Liabilities Can Be Defined As