Which of the following are included in current liabilities?
I.note payable to a supplier in eight months
II.amount due from a customer next month
III.account payable to a supplier that is due next week
IV.loan payable to the bank in fourteen months
A)I and III only
B)II and III only
C)I, II, and III only
D)I, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Current liabilities are obligations that are to be settled within one year or the operating cycle, whichever is longer. Therefore, items I and III are included in current liabilities as they are both payable within one year. Item II represents an account receivable which is not a current liability. Item IV represents a long-term liability as it is payable after one year.

Which of the Following Are Included in Current Liabilities