INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A [credit card bill | credit card balance] would be an example of a current liability.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.

Question

Quizplus · Accepted Answer

A credit card bill represents money owed to the credit card company for purchases made on the card. As this represents a debt that must be paid within a short timeframe (usually one month), it would be considered a current liability. A credit card balance, on the other hand, represents the total amount owed on the credit card, which may include both current and long-term debts. While a credit card balance can be considered a liability, it does not necessarily represent a current liability.

INSTRUCTIONS: Choose the Word or Phrase in [ ] Which