Current liabilities are expected to be:
A) converted to cash within one year.
B) settled within one year.
C) used in the business within one year.
D) acquired within one year.

Question

Quizplus · Accepted Answer

Current liabilities are those obligations that a company expects to settle within one year, either by using current assets, creating new current liabilities, or providing goods or services. Therefore, choice B (settled within one year) is the best answer. Choices A, C, and D are not accurate definitions of current liabilities.

Current Liabilities Are Expected to Be