Current liabilities are defined as those liabilities which will be satisfied
A) by the end of the operating cycle.
B) within one year.
C) within one year or within the operating cycle, whichever is longer.
D) within one year or within the operating cycle, whichever is shorter.

Question

Quizplus · Accepted Answer

Current liabilities are those obligations that are expected to be settled within one year or the normal operating cycle, whichever is longer. This means that if a company has an operating cycle longer than one year, the current liabilities will be defined as those that will be settled within that longer operating cycle, rather than just one year.

Current Liabilities Are Defined as Those Liabilities Which Will Be