Current liabilities consisting of bills owed to suppliers plus wages and taxes due within the upcoming year are known as
A) accounts receivable.
B) accounts payable.
C) prepaid expenses.
D) marketable securities.
E) net liabilities.

Question

Quizplus · Accepted Answer

Current liabilities refer to debts and obligations that must be paid within one year or a normal operating cycle. Bills owed to suppliers and payments related to wages and taxes are examples of current liabilities. These are typically recorded as accounts payable on a company's balance sheet. Therefore, the best choice is option B.

Current Liabilities Consisting of Bills Owed to Suppliers Plus Wages