Current liabilities are defined as obligations that will be paid
A) by refinancing through issuing new long-term liabilities
B) by using existing resources properly classified as current assets
C) out of a fund classified as a long-term investment
D) by using existing resources, regardless of their classification

Question

Quizplus · Accepted Answer

Current liabilities are obligations expected to be paid within one year or within the entity's operating cycle, whichever is longer, and are typically settled by using assets classified as current assets.

Current Liabilities Are Defined as Obligations That Will Be Paid