Which of the following would be classified as a current liability?

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Question: Which of the following would be classified as a current liability?

Options:

Correct Answer: Accounts Payable

Solution:

Accounts Payable is classified as a current liability as it is due within one year.

Which of the following would be classified as a current liability?

Which of the following would be classified as a current liability?

Step 1: Understand what a current liability is. A current liability is a financial obligation that a company needs to pay within one year.
Step 2: Look at the options provided in the question. Identify which option represents a debt or obligation.
Step 3: Check the due date of the identified obligation. If it is due within one year, it is a current liability.
Step 4: Confirm that 'Accounts Payable' is a type of debt that is typically due within one year.
Step 5: Conclude that 'Accounts Payable' is classified as a current liability.

No concepts available.