Current liabilities include all of the following except
A)this year's monthly car payments on a three-year loan.
B)the total mortgage on a home.
C)the amount due on a credit card.
D)next month's payment on a student loan.

Question

Quizplus · Accepted Answer

Current liabilities are debts and obligations that are expected to be settled within one year or the operating cycle of a business, whichever is longer. A mortgage on a home typically has a longer term than one year, so it is not considered a current liability. The other options, such as car payments, credit card balances, and student loan payments, are all examples of current liabilities.

Current Liabilities Include All of the Following Except