Liabilities are classified as current if they:
A)will be paid within the company's operating cycle or within 1 year,whichever is longer.
B)will be paid using current assets.
C)are less than the current assets.
D)are greater than the current assets.

Question

Quizplus · Accepted Answer

Technically,current liabilities are defined as short-term obligations that will be paid or fulfilled within the company's current operating cycle or within one year of the balance sheet date,whichever is longer.Practically,this definition can be simplified as liabilities that are due within one year (because most companies have operating cycles that are shorter than a year).

Liabilities Are Classified as Current If They