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Question

The kind of debts which are needed to be repaid in a short term is known as?

A Fixed Liabilities Correct Answer Incorrect Answer
B Current Liabilities Correct Answer Incorrect Answer
C Depreciating Assets Correct Answer Incorrect Answer
D Intangible Assets Correct Answer Incorrect Answer

Solution

The kind of debts which are needed to be repaid in a short term is known as "Current Liabilities." Current liabilities are obligations or debts that a company is expected to settle within a short period, usually within one year or the operating cycle. These liabilities typically include items such as accounts payable, short-term loans, accrued expenses, and other obligations that come due in the near future. Current liabilities are an important component of a company's financial position and are listed on the balance sheet under the liabilities section.

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