Obligations to be paid within one year or the company's operating cycle, whichever is longer, are:
A) Current assets.
B) Bills.
C) Earned revenues.
D) Operating cycle liabilities.
E) Current liabilities.

Question

Quizplus · Accepted Answer

Obligations to be paid within one year or the company's operating cycle, whichever is longer, are current liabilities. Current assets are assets that can be converted into cash within one year or the operating cycle, whichever is longer. Bills and earned revenues do not necessarily indicate a time frame for payment or receipt, and operating cycle liabilities may extend beyond one year.

Obligations to Be Paid Within One Year or the Company's