The following information is for Acme Auto Supplies: The total dollar amount of liabilities to be classified as current liabilities is
A) $65,000.
B) $75,000.
C) $155,000.
D) $165,000.

Question

The following information is for Acme Auto Supplies:  The total dollar amount of liabilities to be classified as current liabilities is
A) $65,000. 
B) $75,000. 
C) $155,000. 
D) $165,000.

Quizplus · Accepted Answer

Current liabilities are debts that are due and payable within one year. Based on the given information, the following liabilities can be classified as current liabilities:
- Accounts payable: $40,000
- Notes payable (due within one year): $20,000
- Accrued liabilities: $15,000
Total current liabilities = $40,000 + $20,000 + $15,000 = $75,000. Therefore, the correct answer is B.

The Following Information Is for Acme Auto Supplies: the Total