All of the following are characteristics of current liabilities except
A)they may be replaced with a new short-term liability rather than being paid in cash.
B)they may involve estimated amounts.
C)they are due within one year or within the operating cycle,whichever is longer.
D)All three of these are characteristic of current liabilities.

Question

Quizplus · Accepted Answer

All the options listed (A, B, and C) are indeed characteristics of current liabilities. Option A refers to refinancing or rolling over short-term debt, option B acknowledges that some liabilities, like warranties, can be estimated, and option C defines the time frame that typically classifies a liability as current.

All of the Following Are Characteristics of Current Liabilities Except