A current liability is a debt that can reasonably be expected to be paid:
A) within one year or the company's normal operating cycle (if it is longer than one year).
B) between 6 months and 18 months.
C) out of cash on hand.
D) out of current revenues.

Question

Quizplus · Accepted Answer

A current liability is a debt that is due within one year or the company's normal operating cycle, whichever is longer. This means that it is expected to be paid off using current assets or through the use of current revenues within the next year or operating cycle. Therefore, choice A is the correct answer.

A Current Liability Is a Debt That Can Reasonably Be