Most companies pay current liabilities

Question

Quizplus · Accepted Answer

Current liabilities are typically due within one year and can include things like accounts payable, salaries payable, and short-term loans. These liabilities are usually paid off using current assets, such as cash and accounts receivable. Option B is incorrect because notes payable are a type of liability, not a means of paying off other liabilities. Option C is incorrect because issuing stock does not involve the payment of liabilities. Option D is incorrect because creating long-term liabilities would not be an appropriate way to pay off current liabilities.

Most Companies Pay Current Liabilities