Current liabilities can be viewed as
A) debts that mature in one year or less.
B) debts that mature in more than one year.
C) sources of cash inflows.
D) none of the above

Question

Quizplus · Accepted Answer

Current liabilities represent debts that must be paid within one year or the current operating cycle, whichever is longer. These liabilities are typically short-term and require a company to pay off its obligations in a relatively short period of time. Examples of current liabilities include accounts payable, wages payable, and short-term loans. Option B is incorrect because debts that mature in more than one year are typically classified as long-term liabilities. Option C is incorrect as current liabilities do not represent sources of cash inflows. Option D is incorrect as there is a correct answer.

Current Liabilities Can Be Viewed as