Current liabilities are liabilities that:
A) will be converted to cash within a year.
B) must be paid within a year.
C) will be converted to equity within a year.
D) none of the above.

Question

Quizplus · Accepted Answer

Current liabilities are obligations that must be paid within a year, including accounts payable, short-term loans, and accrued expenses. They are not necessarily related to cash conversion or equity. Therefore, option B is the best answer.

Current Liabilities Are Liabilities That