Current liabilities are expected to be paid within one year or the operating cycle, whichever is longer.

Question

Quizplus · Accepted Answer

Current liabilities are expected to be paid off within one year or the operating cycle, whichever is longer. This means that a liability that is expected to be paid off within a year is considered a current liability, while a liability that is expected to be paid off in more than a year is considered a non-current liability.

Current Liabilities Are Expected to Be Paid Within One Year