Most companies pay current liabilitiesA) out of current assets.B) by issuing interest-bearing notes payable.C) by issuing stock.D) by creating long-term liabilities.

Question

Most companies pay current liabilitiesA)  out of current assets.B)  by issuing interest-bearing notes payable.C)  by issuing stock.D)  by creating long-term liabilities.

Siddharth Gusani · Accepted Answer

Final Answer : A, Explanation :  Current liabilities are expected to be paid within a year, and the most common way companies pay them is by using their current assets, such as cash and accounts receivable. Option B and D are incorrect because they suggest creating long-term liabilities or issuing notes payable, which are not appropriate for current liabilities. Option C is also incorrect because issuing stock does not directly relate to paying current liabilities.

Most companies pay current liabilities

A) out of current assets.
B) by issuing interest-bearing notes payable.
C) by issuing stock.
D) by creating long-term liabilities.

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