In most companies, current liabilities are paid within

Question

Quizplus · Accepted Answer

Current liabilities are typically expected to be paid within one year or the operating cycle, whichever is longer. These liabilities are typically paid using current assets, such as cash or accounts receivable. Therefore, choice C is the best answer as it covers both possibilities. Choosing choice A or B may not always be accurate as current liabilities may not always be paid through the creation of other current liabilities. Option D only covers the operating cycle, which may be longer than one year in some cases.

In Most Companies, Current Liabilities Are Paid Within