Current liabilities must be paid either in cash or with goods and services within one year or within the entity's operating cycle,if the cycle is longer than a year.

Question

Quizplus · Accepted Answer

Current liabilities are defined as obligations that are expected to be settled within one year or within the entity's operating cycle, if the cycle is longer than a year. This means they need to be paid either in cash or with goods and services within a year or the operating cycle. Therefore, the statement is true.

Current Liabilities Must Be Paid Either in Cash or with Goods