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28 May, 04:32

A current liability is a debt that can reasonably be expected to be paid

a. within one year, or the operating cycle, whichever is longer.

b. between 6 months and 18 months.

c. out of currently recognized revenues.

d. out of cash currently on hand.

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Answers (1)
  1. 28 May, 08:31
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    Answer: Option A

    Explanation: In simple words, current liabilities refers to the obligations that are risen due to borrowings made for uses that were short term or non repetitive.

    The liquidity of a company is a measurement of its ability to pay short term debt. The current liabilities are either paid in a year or in an operating cycle whichever is longer.

    Hence the correct option is A.
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Home » Business » A current liability is a debt that can reasonably be expected to be paid a. within one year, or the operating cycle, whichever is longer. b. between 6 months and 18 months. c. out of currently recognized revenues. d. out of cash currently on hand.
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