Question

Current liabilities:_____

a. Include accounts payable, other accrued liabilities and retained earnings
b. Are those liabilities that are likely to be paid with cash within one year of the balance sheet date
c. Are those liabilities that are likely to be paid in cash within two years of balance sheet
d. Include accounts payable, short-term debt, and long-term debt

Answer 1

Current liabilities are those liabilities that are likely to be paid with cash within one year of the balance sheet date. They include accounts payable, short-term debt, and other accrued liabilities.

Step-by-step explanation:

Current liabilities are those liabilities that are likely to be paid with cash within one year of the balance sheet date. They include accounts payable, short-term debt, and other accrued liabilities.

For example, a company may have accounts payable to its suppliers for goods or services purchased but not yet paid for. These accounts payable are expected to be paid within one year.

Therefore, option b is the correct answer: Current liabilities are those liabilities that are likely to be paid with cash within one year of the balance sheet date.