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100 POINTS HELP Which is an example of a current liability?

A. Long-term loan
B. Long-term project
C. Wages payable
D. Mortgage

User Leqid
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1 Answer

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A current liability is typically one paid within the fiscal year. So, wages payable would be a current liability, since you need to pay wages to your employees constantly.

(A mortgage would not be a current liability since it has debt that goes on for beyond 1 year)

(Also, typically a ‘long-term’ anything will not be a current liability, since as the name suggests it extends for beyond a year)
User Dave Olson
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