Which of the following is a current liability?

Question

Quizplus · Accepted Answer

A cash dividend payable to preference shareholders is a current liability because it is an obligation to pay out cash within one year. Preference dividends in arrears are also a liability, but it is not a current liability because it is past due and does not need to be paid within one year. A dividend payable in the form of additional shares is not a current liability because it does not involve the payment of cash.

Which of the Following Is a Current Liability