Which of the following are included in current liabilities?
I.Debt payable to a mortgage company in nine months
II.Note payable to a supplier in eighteen months
III.Accounts payable to suppliers
IV.Loan payable to a bank in fourteen months
A)I and III only
B)II and III only
C)III and IV only
D)II,III,and IV only
E)I,II,and III only

Question

Quizplus · Accepted Answer

Current liabilities are obligations that a company needs to settle within one year or the operating cycle, whichever is longer. Among the given options, only Debt payable to a mortgage company in nine months and Accounts payable to suppliers meet this criterion. Note payable to a supplier in eighteen months and Loan payable to a bank in fourteen months are not due within one year, so they are not considered current liabilities.

Which of the Following Are Included in Current Liabilities