Current liabilitiesA) are obligations that the company is to pay within the forthcoming year.B) are listed in the balance sheet in order of their expected maturity.C) are listed in the balance sheet starting with accounts payable.D) should not include long-term debt that is expected to be paid within the next year.

Question

Current liabilitiesA)  are obligations that the company is to pay within the forthcoming year.B)  are listed in the balance sheet in order of their expected maturity.C)  are listed in the balance sheet starting with accounts payable.D)  should not include long-term debt that is expected to be paid within the next year.

Marissa Hanley · Accepted Answer

Final Answer : A, Explanation :  Current liabilities are obligations that are expected to be settled within the next year or operating cycle, whichever is longer. They are listed in order of expected maturity on the balance sheet and include accounts payable, wages payable, taxes payable, and short-term loans among others. Long-term debt that is expected to be paid within the next year should also be included in current liabilities.

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