Which of the following is an example of a current liability?
A) Accounts payable
B) Accounts receivable
C) Equipment
D) Fixtures
E) Merchandise

Question

Quizplus · Accepted Answer

Accounts payable is a current liability since it represents the money that a business owes to suppliers or vendors that is due for payment within a short period of time, usually less than a year. The other options (B, C, D, and E) are not current liabilities - accounts receivable is an asset, equipment and fixtures are fixed assets, and merchandise is inventory.

Which of the Following Is an Example of a Current