When creating a personal balance sheet,which of the following is a current liability?

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Quizplus · Accepted Answer

A current liability is a debt that is expected to be paid within a year. Checking account and net worth are not liabilities. Money your sister owes you in two years is not a current liability as it is not expected to be paid within a year. Student loan is a liability but it depends on the terms of the loan as to whether it is a current liability or a long-term liability. A charge account balance, on the other hand, is a debt that needs to be paid within a year, making it a current liability.

When Creating a Personal Balance Sheet,which of the Following Is