Current liabilities are often defined as those
A)payable immediately.
B)payable within one year.
C)payable over the same maturity as the asset they financed.
D)that can be liquidated without decreasing your existing net worth.

Question

Quizplus · Accepted Answer

Current liabilities are those that are expected to be paid within one year or the company's operating cycle, whichever is longer. This includes accounts payable, salaries payable, taxes payable, and short-term loans. Therefore, option B is the best choice as it correctly defines current liabilities. Options A, C, and D do not fully capture the definition of current liabilities.

Current Liabilities Are Often Defined as Those