Question

Current liabilities are obligations due within:

a) one year or within the company's normal operating cycle if it is longer than one year
b) one month or within the company's normal operating cycle if it is shorter than one month
c) one month or within the company's normal operating cycle if it is longer than one month
d) one year or within the company's normal operating cycle if it is shorter than one year

Answer 1

Current liabilities are obligations that are due within a specific time frame, either one year or within the company's normal operating cycle if it is longer than one year.

Step-by-step explanation:

In accounting, current liabilities are obligations that are due within a specific time frame, either one year or within the company's normal operating cycle if it is longer than one year. This means that the company is expected to fulfill these obligations within the stated time period.

For example, if a company has a loan with a repayment period of six months, that loan would be classified as a current liability because it is due within one year.

Therefore, the correct answer is a) one year or within the company's normal operating cycle if it is longer than one year.