Which of the following is a characteristic of a current liability?

A current liability is due within one year or one operating cycle, whichever is longer.

A current liability must be of a known amount.

A current liability must be of an estimated amount.

Current liabilities are subtracted from long-term liabilities on the balance sheet.

Question

Lorelei Camacho

Business

2 February, 02:20

Which of the following is a characteristic of a current liability?

A current liability is due within one year or one operating cycle, whichever is longer.

A current liability must be of a known amount.

A current liability must be of an estimated amount.

Current liabilities are subtracted from long-term liabilities on the balance sheet.

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Answers (1)

Know the Answer?

Hezekiah Salinas · Answer 1

Hey Friend.

A is the answer.

Current liability represent debts that will be repaid within a year. e. g. Accounts payable (creditor), bank overdraft, expenses owing, prepaid revenue.