A firm classifies liabilities which fall due within the operating cycle, usually one year, as
A)a current liability.
B)a long-term liability.
C)a noncurrent asset.
D)part of shareholders' equity.
E)a contingent liability.

Question

Quizplus · Accepted Answer

Liabilities that fall due within the operating cycle, usually one year, are classified as current liabilities because they are expected to be settled within a year.

A Firm Classifies Liabilities Which Fall Due Within the Operating