Current Liabilities

Explanation

Accounts receivable represent current assets.

The question asks which of the given options are considered current liabilities. Let's analyze each option:

I. Accounts receivable: Accounts receivable refers to the money owed to a company by its customers for goods or services that have been sold on credit. It represents the company's right to receive payment from its customers. However, accounts receivable is not a current liability. It is an asset on the company's balance sheet, representing the amount the company expects to collect from its customers in the near future. Therefore, option I is not a current liability.

II. Cash advances received: Cash advances received typically represent funds received by a company in advance of providing goods or services. These funds are usually received with the expectation that the company will fulfill its obligations at a later date. Cash advances received are considered a liability because the company has an obligation to provide the goods or services in exchange for the advance payment. Therefore, option II is a current liability.

III. Advance magazine subscription payments received: When a company receives payments in advance for magazine subscriptions that will be delivered in the future, it creates a liability called unearned revenue or deferred revenue. The company has an obligation to provide the magazines to the subscribers over time. Until the magazines are delivered, the advance payments received are considered a current liability. Therefore, option III is a current liability.

IV. Revenues from credit card fees: Revenues from credit card fees represent income earned by a company from fees charged for credit card transactions. It is not a liability but rather a revenue account that increases the company's equity or net income. Revenues from credit card fees are recognized when earned, and they do not create a current liability. Therefore, option IV is not a current liability.

Based on the analysis above, the options that represent current liabilities are II (Cash advances received) and III (Advance magazine subscription payments received). Therefore, the correct answer is B. II & III.