The Barkley Company has recorded its unpaid bill for supplies under a current liabilities account on the balance sheet.This payment will be due to the supplier in less than a year.

Question

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Recording the unpaid bill for supplies under a current liabilities account on the balance sheet indicates that the payment will be due to the supplier in less than a year, which is the definition of a current liability.

The Barkley Company Has Recorded Its Unpaid Bill for Supplies