What is the value of current liabilities? $$\begin{array} { l l l r }
\text { Cash } & \$ 50,000 & \text { Irventory } & \$ 9,000 \
\text { Sales } & \$ 30,000 & \text { Accounts Payble } & \$ 9,000 \
\text { Cost of Goods Sold } & \$ 8,000 & \text { Accourts Receivable } & \$ 18,000 \
\text { Prepaid Irsurance } & \$ 8,000 & \text { Insurance Expense } & \$ 9,000 \
& & \text { Long-Term Liabilities (due withirl one year) } & \$ 30,000
\end{array}$$

Question

What is the value of current liabilities? $$\begin{array} { l l l r } 
\text { Cash } & \$ 50,000 & \text { Irventory } & \$ 9,000 \
\text { Sales } & \$ 30,000 & \text { Accounts Payble } & \$ 9,000 \
\text { Cost of Goods Sold } & \$ 8,000 & \text { Accourts Receivable } & \$ 18,000 \
\text { Prepaid Irsurance } & \$ 8,000 & \text { Insurance Expense } & \$ 9,000 \
& & \text { Long-Term Liabilities (due withirl one year) } & \$ 30,000
\end{array}$$

Quizplus · Accepted Answer

Current liabilities are short-term debts that are due within one year. In this case, the accounts payable and accounts receivable are canceled out, leaving a total of $30,000 in long-term liabilities due within one year. The other items listed are either assets or expenses/prepaid expenses and do not count towards current liabilities. Therefore, the value of current liabilities is $30,000. Therefore, the correct answer is option B.

What Is the Value of Current Liabilities A)$ 30,000 B)$ 39,000 C)$ 42,000 D)$ 44,000

What Is the Value of Current Liabilities A)$ 30,000
B)$ 39,000
C)$ 42,000
D)$ 44,000