Current Liabilities

Current Liabilities

Prev Question Next Question

Question

Which of the following is a current liability?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

D

Only accounts payable would be a current liability. Current liabilities must be settled over the longer of one year or a firm's operating cycle; thus, the maximum time frame for settlement is one year. Preferred stock is generally not repaid, bonds are repaid over many years and depreciation is an expense not a liability.