Question

Items considered to be current liabilities include all of the following except?

1) Deferred revenue
2) Short-term debt
3) Accumulated other comprehensive income
4) Taxes payable

Answer 1

The correct answer is option 3) Accumulated other comprehensive income. Current liabilities include items such as accounts payable, salaries payable, and taxes payable, which are expected to be settled within a year. Accumulated other comprehensive income is a component of shareholders' equity and not considered a current liability.

Step-by-step explanation:

The correct answer is option 3) Accumulated other comprehensive income.

Current liabilities are obligations that are expected to be settled within one year or the normal operating cycle of a business, whichever is longer. They include items such as accounts payable, salaries payable, and taxes payable. Deferred revenue, short-term debt, and taxes payable are considered current liabilities because they are expected to be settled within a year.

Accumulated other comprehensive income, on the other hand, is a component of shareholders' equity and represents unrealized gains and losses on certain financial instruments. It is not a current liability because it does not represent an obligation to pay money within a year or the normal operating cycle.