Question

What is the primary characteristic of a current liability?

A It is due within two years Correct Answer Incorrect Answer
B It is due within one year Correct Answer Incorrect Answer
C It is due within three years. Correct Answer Incorrect Answer
D It is due within five years. Correct Answer Incorrect Answer

Solution

Current liabilities refer to the debts and obligations that a company is expected to pay within one year or its operating cycle, whichever is longer.

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