Which of the following CANNOT be classified as a current liability?
A) Accounts payable
B) Provision for long service leave
C) Loans
D) Inventory

Question

Quizplus · Accepted Answer

Inventory is not a liability, it is an asset. The other options are all current liabilities. Accounts payable are amounts owed to suppliers for goods or services purchased on credit. Provision for long service leave is a future obligation to pay employees for long service leave entitlements. Loans are funds borrowed that must be repaid within a year.

Which of the Following CANNOT Be Classified as a Current