Asked by Elizabeth Doqaj on May 02, 2024
Verified
Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities.
Current Liabilities
Liabilities that will be due within a short time (usually one year or less) and that are to be paid out of current assets.
Current Assets
Assets expected to be converted into cash, sold, or consumed within one year or during the business's operating cycle, whichever is longer.
- Distinguish between current liabilities and other types of liabilities.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
True
Explanation :
This is the definition of current liabilities. They are expected to be paid off within one year using current assets.
Learning Objectives
- Distinguish between current liabilities and other types of liabilities.
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