Question

Liabilities are the amounts of money due to others that need to be paid now? True or False?

Answer 1

The correct answer is TRUE

Step-by-step explanation:

Liabilities are the amounts of money due to others that need to be paid now.

Current liabilities are those that need to be paid in full within a short period of time (say less than one year).

Long-term liabilities are those that do not need to be paid in full for a longer period of time (more than one year).

I also just took the test, and TRUE is 100% correct.

Answer 2

False-
Current liabilities are ones the company expects to settle within 12 months.