Which of the following is the equation form of current liabilities?
A) cash + marketable securities + accounts receivable + prepaid expenses + inventory
B) cash + marketable securities + accounts receivable − prepaid expenses + inventory
C) investments + fixed assets − accumulated depreciation + intangible assets
D) notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt
E) long-term debt + pension fund liabilities + long-term lease obligations

Question

Quizplus · Accepted Answer

Current liabilities represent those obligations that are expected to be settled within one year or the operating cycle, whichever is longer. The equation form of current liabilities includes notes payable, accounts payable, other items payable, dividends payable, and the current portion of long-term debt. Therefore, choice D is the correct answer.

Which of the Following Is the Equation Form of Current