Current liabilities are liabilities that ________.
A)must be satisfied within two years
B)must be paid from revenues
C)must be of a definite amount
D)are to be settled within one year

Question

Quizplus · Accepted Answer

Current liabilities are liabilities that are expected to be settled within one year or the normal operating cycle of the business, whichever is longer. Therefore, choice D is the correct answer. Choices A and C are incorrect because current liabilities may not have a definite amount and may not necessarily be satisfied within two years. Choice B is incorrect because current liabilities may be paid from any source, not just revenues.

Current Liabilities Are Liabilities That ________