Question

A current liability is a debt that can reasonably be expected to be paid Group of answer choices within one year or the operating cycle, whichever is longer. between 6 months and 18 months. out of currently recognized revenues. out of cash currently on hand.

Answer 1

within one year or the operating cycle, whichever is longer.

Step-by-step explanation:

The current liability means the liability that becomes due and can be expected to be paid by maximum of the one year i.e. 12 months or the operating cycle whichever is more

It includes the account payable, salaries payable, wages payable in which the time period is of maximum 12 months

So the first option is correct