____________ normally must be paid by a ﬁrm within 12 months.

Question

Quizplus · Accepted Answer

Current liabilities are debts that must be paid within a year, such as accounts payable, salaries payable, and short-term loans. Long-term bank loans, bonds, and marketable securities all have a longer repayment period and are not considered current liabilities. Accounts receivable, on the other hand, represent money that is owed to the firm by customers and are not debts that must be paid by the firm within 12 months.

____________ Normally Must Be Paid by a ﬁRm Within 12