Which of the following are included in current liabilities?
I. Note payable to a supplier in eighteen months
II. Debt payable to a mortgage company in nine months
III. Accounts payable to suppliers
IV. Loan payable to the bank in fourteen months
A) I and III only
B) II and III only
C) III and IV only
D) II, III, and IV only
E) I, II, and III only

Question

Quizplus · Accepted Answer

Current liabilities are obligations a company expects to settle within one year. Accounts payable (III) and debt payable in nine months (II) are current liabilities. Notes payable in eighteen months (I) and loans payable in fourteen months (IV) are not current liabilities as they exceed one year.

Which of the Following Are Included in Current Liabilities