Question

Any amount due within a year is considered a current liability?
1) True
2) False

Answer 1

Yes, any amount that is due within a year is considered a current liability. This includes financial obligations like accounts payable and short-term loans.

Step-by-step explanation:

The answer is True. Current liabilities are financial obligations or debts that are due for payment within one year. They are a key part of a company's short-term financial responsibilities and include items such as accounts payable, short-term loans, accrued liabilities, and other similar debts.

Any amount due within a year is considered a current liability.

The statement is true. Any amount due within a year is considered a current liability. Current liabilities are obligations that are expected to be paid within a short period of time, usually within one year or the normal operating cycle of a business, whichever is longer.

Examples of current liabilities include accounts payable, wages payable, and short-term loans.