All of the following are characteristics of current liabilities except:
A) They may be replaced with a new short-term liability rather than being paid in cash.
B) They may involve estimated amounts.
C) They are due within one year or within the operating cycle, whichever is longer.
D) All three of the above are characteristic of current liabilities.

Question

Quizplus · Accepted Answer

All three of the given characteristics are correct and accurate regarding current liabilities. They can be replaced with another short-term liability instead of being paid in cash, they may involve estimated amounts, and they are due within one year or within the operating cycle, whichever is longer. Therefore, option D is the correct answer.

All of the Following Are Characteristics of Current Liabilities Except