Current liabilities are defined as those liabilities that will be satisfied
A)by the end of the operating cycle.
B)within one year.
C)within one year or within the operating cycle,whichever is longer.
D)within one year or within the operating cycle,whichever is shorter.

Question

Quizplus · Accepted Answer

Current liabilities are defined as obligations that a company expects to pay within the shorter of one year or its operating cycle, or if longer, within one year or the operating cycle. This definition allows for the inclusion of liabilities that may extend slightly beyond a year in industries where the operating cycle is longer than one year.

Current Liabilities Are Defined as Those Liabilities That Will Be