Short-term liabilities are also known as ________ liabilities.
A)fixed
B)instant
C)debenture
D)current

Question

Quizplus · Accepted Answer

Short-term liabilities refer to debts or obligations that are due to be paid within one year or the operating cycle of a business, whichever is longer. These liabilities are also known as current liabilities, as they are expected to be settled within a short period of time. Option A fixed liabilities refer to long-term obligations lasting for more than one year, whereas option B instant liabilities is not a commonly used term in accounting. Option C debenture is a specific type of long-term debt instrument and is not synonymous with short-term liabilities.

Short-Term Liabilities Are Also Known as ________ Liabilities